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THE  GOVERNOR'S  BUDGET 
IN  MAINE,  1917 


UC-NRLF 


B    3    DST    ^73 


By 


HUNTINGTON/  GILCHRIST 


Submitted  in  Partial  Fulfillment  of  the  Requirements 

for  the  Degree  of  Doctor  of  Philosophy  in  the 

Faculty  of  Political  Science,  Columbia 

University,  New  York,  1918 


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EXCHANGE 


THE  GOVERNOR'S  BUDGET 
IN  MAINE,  1917 


By 


HUNTINGTON  GILCHRIST 


Submitted  in  Partial  Fulfillment  of  the  Requirements 

for  the  Degree  of  Doctor  of  Philosophy  in  the 

Faculty  of  Political  Science,  Columbia 

University,  New  York,  191 8 


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THE  GOVERNOR'S  BUDGET   IN  MAINE,  1917 


CONTENTS 
Chapter  Page 

I— BUDGET  REFORM 1 

II— STATE  OF  MAINE— GOVERNMENTAL  ORGANIZATION 
AND  OPERATION 

Legislative 4 

Executive 8 

Judicial 14 

III— FINANCIAL   LEGISLATION   AND   CONTROL   BEFORE 
THE  1917  RfiGIME 

Estimates 16 

Routine  of  Legislative  Procedure  on   Financial 

Measures 19 

Legislative  Action  in  1915 22 

Control  of  the  Finances 25 

IV— GOVERNOR    MILLIKEN'S    PROGRAM    AND    ITS   AC- 
CEPTANCE 

First  Steps 32 

Publicity 33 

Auditor's  Estimates 35 

The  Governor  Before  the  Legislature 37 

Legislative  Organization 42 

The  Governor  as  the  Legislative  Leader 44 

Early  Relations  with  Committee  Chairmen  . .  44 

Joint  Budget  Hearings 47 

The  Budget  Presented 52 

Committee  Hearings 58 

Debates  in  House  and  Senate 62 

The  Governor  as  an  Adviser 67 

Revenue  Situation 71 

Final  Legislative  Action 76 

V— CONCLUSIONS 

The  Formation  and  Form  of  the  Financial  Plan  ...  83 

Legislative  Action  and  Procedure 89 

Funds,  Their  Disposition  and  Control 99 

GENERAL  SUMMARY 104 

Or 


425632 


1    >        1 


CHAPTER    I 
BUDGET   REFORM 


"A  budget  is  a  definite  plan  or  proposal  for  financing  the  busi- 
ness of  a  future  period  both  with  respect  to  revenues  and  expendi- 
tures. m  This  is  the  budget  in  its  narrow  sense;  in  a  broader  way 
the  budgetary  problem,  with  which  this  paper  deals,  includes  (1) 
the  formation  of  the  financial  plan,  (2)  action  upon  it,  and  (3) 
control  of  its  administration.  That  government  which  admin- 
isters its  finances  without  attempting  to  bring  detached  operations 
into  a  logical  and  harmonious  system  has  no  budget. 

The  plan  may  be  formulated  either  by  the  legislative  or  by  the 
executive  branch  of  the  government.  It  ordinarily  contains  a 
summary  of  actual  revenues  and  expenditures  for  a  period  of 
years,  a  statement  setting  forth  in  summary  form  the  financial 
condition  of  the  government,  a  summary  of  the  estimates,  a 
summary  of  the  revenue  and  appropriation  proposals  for  the 
period  to  be  financed,  and  a  message  setting  forth  the  significance 
of  the  proposals. 

Action  upon  the  plan  in  the  form  of  discussion,  criticism,  amend- 
ment or  acceptance  is  taken  by  the  legislature,  from  whom  auth- 
orization to  execute  must  ordinarily  come.  Its  final  action,  how- 
ever, may  be  subject  to  veto  by  the  executive. 

Control  of  budget  administration  normally  lies  with  the  execu- 
tive but  the  legislature  exercises  certain  reviewing  powers  which 
in  some  cases  practically  amount  to  administrative  supsrvision.2 

The  government  of  Great  Britain  has  a  budget,  formulated 
annually  by  the  treasury,  the  highest  administrative  organ  of  the 
executive,  acted  upon  with  the  greatest  of  care  by  parliament,  and 
controlled  in  its  administration  by  the  treasury,  which  is  con- 
stantly watched  by  the  agents  of  parliament. 

The  government  of  the  United  States  has  no  budget.  Esti- 
mates of  expenditure  as  proposed  by  administrative  departments 
are  compiled  by  the  treasury  department,  but  congress  passes 
appropriation  and  revenue  measures  as  it  pleases,  and  yet  pos- 
sesses practically  no  supervisory  powers  over  the  administration 
of  the  funds  by  the  various  departments. 


1  The  System  of  Financial  Administration  of  Great  Britain,  Willoughby,  Will- 
oughby,  and  Lindsay.     D.  Appleton  Co.,  New  York,  1917. 

2  Ibid.,  pp.  226-234. 

2  1 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


•    4         t 


Twenty-seven'  states  have  so-called  budget  systems, — of  four 
general  types.  In  the  first,  the  financial  plan  is  formulated  by  a 
legislative  committee, — Arkansas,  New  York.  In  the  second, 
the  plan  is  formulated  by  a  joint  committee  of  representatives  of 
the  executive  and  the  legislative  branches  of  the  government, — 
Connecticut,  North  Dakota,  South  Dakota,  Vermont,  Wisconsin. 
In  the  third,  the  planning  function  is  delegated  to  a  committee 
of  executive  officers  or  an  individual  executive  other  than 
the  governor, — California,  Louisiana,  Massachusetts,  Michigan, 
New  Mexico,  Tennessee,  and  Washington.  In  the  fourth,  the 
governor  alone  is  responsible  for  a  program, — Delaware,  Illinois, 
Iowa,  Kansas,  Maine,  Maryland,  Minnesota,  Nebraska,  New 
Jersey,  New  Mexico,  New  York,1  Ohio,  Oregon,  Utah.  In  only 
one  state,  Maryland,  is  the  budget  system  provided  for  in  the 
Constitution,  and  in  only  two  states,  Maryland  and  Utah,  is  the 
authority  of  the  legislature  to  change  the  budget  seriously  limited, 
and  in  the  latter  only  by  legislative  fiat. 

Although  the  British  budget  system  has  possessed  all  its  funda- 
mental characteristics  for  years,  it  was  not  until  1911  that  the 
budget  movement  in  American  states  really  began.  The  start 
was  made  in  Wisconsin  in  that  year  but  most  of  the  present  budget 
systems  were  not  arranged  until  1915.2  Maryland  did  not  enact 
its  radical  plan  until  1916  and  Utah  adopted  its  new  policy  only 
in  1917.  American  cities,  it  is  true,  have  in  some  cases  had 
something  approaching  budgetary  procedure  for  many  years,  but 
their  action  does  not  seem  to  have  had  much  influence  upon  the 
financial  management  of  states. 

Publications  treating  the  subject  of  national  and  state  budgets 
in  a  scientific  manner  are  rare,  and,  in  almost  every  case,  decidedly 
recent.  Two  organizations,  the  Institute  of  Government  Research 
at  Washington,  D.  C,  and  the  Bureau  of  Municipal  Research, 
at  New  York  City,  have  been  largely  responsible  for  the  publica- 
tion of  whatever  material  of  value  is  now  available.  The  former 
issued  early  in  1917  an  authoritative  work  on  British  financial 
administration,3  and  an  English  translation  of  the  leading  analysis 
of  the  French  financial  system.4  Treating  directly  of  the  manage- 
ment of  the  finances  of  American  states  are  several  numbers  of 

1  The  Sage  Bill  enacted  into  law  in  1916  provided  for  submission  of  two 
budgets,  one  by  a  joint  legislative  committee  an  d    he  other  by  the  governor. 

2  The  Recent  Movement  for  State  Budget  Reform:  1911-1917  by  Fred  Wilbur 
Powell.     Municipal  Research,  No.  91,  New  York,  1917. 

s  The  System  of  Financial    Administration  of  Great  Britain,   Willoughby 
Willoughby  and  Lindsay.     D.  Appleton  Co.,  New  York,  1917. 

*  The  Budget  (7th  edition) — Rene*  Stourm — D.  Appleton  &  Co.,  New  York, 
1917. 

2 


BUDGET     REFORM 


Municipal  Research,  issued  in  1915,  1916  and  1917. l  The  Need 
for  a  National  Budget  (the  Report  of  President  Taft's  Commission 
on  Economy  and  Efficiency,  1912, 2)  is  most  comprehensive  in 
its  analysis  of  the  typical  financial  system  in  America  and  most 
complete  in  its  recommendations  for  an  adaptation  of  the  budget 
idea.     Unfortunately  there  are  few  copies  of  this  report  available. 


1  Municipal  Research,  published  monthly  by  the  Bureau  of  Municipal  Re- 
search, New  York,  N.  Y. 

2  House  Document  No.  854,  62nd  Congress,  2nd  Session. 


3 


CHAPTER  II 

STATE  OF  MAINE— GOVERNMENTAL  ORGANIZATION 

AND  OPERATION 


In  theory  the  time-honored  doctrine  of  the  threefold  separation 
of  powers  holds  sway  in  the  functional  organization  of  the  State  of 
Maine,  for  Article  III  of  the  Constitution  of  1819,  entitled  "  Dis- 
tribution of  Powers"  reads: 

Sec.  1.  The  powers  of  this  government  shall  be  divided 
into  three  distinct  departments,  the  legislative,  executive 
and  judicial. 

Sec.  2.  No  person  or  persons,  belonging  to  one  of  these  de- 
partments, shall  exercise  any  of  the  powers  properly  belong- 
ing to  either  of  the  others,  except  in  the  cases  herein  expressly 
directed  or  permitted.1 

A  glance  at  the  chart  on  page  6,  however,  will  show  that, 
so  far  as  the  appointing  power  is  concerned,  there  are  three 
governmental  units  which  are  entirely  independent  of  one  an- 
other; the  legislature,  the  governor,  and  the  auditor.  The  judicial 
officers,  from  this  standpoint,  have  no  more  independence  than 
the  various  other  administrative  officials. 

Legislative 

Article  IV — Part  first,  entitled  "  Legislative  power — House  of 
Representatives"  begins  as  follows: 

Sec.  1.  The  legislative  power  shall  be  vested  in  two  dis- 
tinct branches,  a  house  of  representatives,  and  a  senate,  each 
to  have  a  negative  on  the  other  and  both  to  be  styled  the 
legislature  of  Maine.     .     .     .* 

Part  third  of  the  same  article,  entitled  "Legislative  Power," 
contains  the  following  provisions: 

Sec.  1.  The  legislature  shall  convene  on  the  first  Wednes- 
day of  January  biennially,  and  shall  have  full  power  to 
make  and  establish  all  reasonable  laws  and  regulations  for 
the  defence  and  benefit  of  the  people  of  this  state,  not  repug- 
nant to  this  constitution,  nor  to  that  of  the  United  States. 

Sec.  2.  Every  bill  or  resolution  having  the  force  of  law,  to 
which  the  concurrence  of  both  houses  may  be  necessary, 


1  The  Revised  Statutes  of  the  State  of  Maine,  Passed  Sept.  29,  1916,  and  taking 
effect  January  1,  1917.     Portland,  1916. 
■  Ibid. 

4 


GOVERNMENTAL    ORGANIZATION     AND     OPERATION 

except  on  a  question  of  adjournment,  which  shall  have  passed 
both  houses,  shall  be  presented  to  the  governor,  and  if  he 
approve,  he  shall  sign  it;  if  not  he  shall  return  it  with  his 
objections  to  the  house  in  which  it  originated,  which  shall 
enter  the  objections  at  large  on  its  journals  and  proceed  to 
reconsider  it.     .     .     -1 


The  Revised  Statutes  of  the  State  of  Maine,  Portland,  1916. 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


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Note:  The  governor  must  also   approve  the  appointment  of  the  Super- 
intendent of  Public  Printing. 


6 


GOVERNMENTAL     ORGANIZATION     AND     OPERATION 


ORGANIZATION    OF   TH£      LCGJS LATU R£ 

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■  MY.  au*tAU   or  WJKKITAL  ICiCAMAf 


It  will  be  noticed  by  reference  to  the  chart  on  page  six  that  the 
legislative  power  also  involves  the  appointment  of  the  governor's 
council  and  of  several  administrative  officials  whose  functions  are 
of  a  fiscal,  administrative,  and  a  public  service  nature. 

The  Maine  legislature,  as  other  similar  bodies,  has  two  distinct 
personalities — one,  legal,  and  the  other,  political. 

As  indicated  by  the  constitution,  it  is  legally  composed  of  two 
distinct  branches  designed  to  have  a  check  upon  each  other. 
Practically,  it  is  controlled  by  a  joint  caucus  composed  of  all  the 
members  of  the  dominant  political  party,  if  there  be  one  supreme 
in  both  houses. 

This  twofold  organization  of  the  law-making  power  is  shown  in 
some  detail  in  the  above  chart.  Of  course  if  the  same  political  party 
should  not  be  dominant  in  both  houses,  the  unofficial  machinery 
which  is  indicated  in  the  upper  part  of  the  chart  could  not  function 
and  the  check  and  balance  action  of  the  two  houses  would  become 
evident.  With  the  same  political  party  in  control  of  house  and 
senate,  however,  the  unofficial  organization  is  by  far  the  more  im- 
portant. In  the  caucus  of  that  party  are  decided  all  questions  of 
large  significance,  the  later  action  of  legislative  committees  and 
of  house  and  senate  being  merely  perfunctory.  The  minority 
party,  of  course,  has  its  caucuses  but  their  action,  naturally  can 

7 


THE    GOVERNOR'S    BUDGET    IN     MAINE,     1917 


have  little  effect  on  actual  legislation,  although  their  stand  may 
have  considerable  moral  influence  on  the  action  of  the  majority. 
Besides  deciding  important  political  questions,  the  caucuses 
usually  nominate  candidates  for  legislative  offices  and  the  unos- 
tentatious workings  of  the  steering  committees1  often  have  most 
important  bearings  on  the  fate  of  legislative  bills. 

Almost  all  legislation  which  has  no  particular  party  significance 
is  actually  prepared  in  the  thirty-six  joint  standing  committees  of 
the  two  houses,  and  these  joint  standing  committees  are  distinctive 
features  of  the  Maine  legislature.  In  most  states,  each  house  has 
its  own  committees  which  consider  bills  separately;  the  more 
reasonable  joint  committee  system  is  rare  outside  of  New  England. 
In  Maine,  each  committee,  except  that  on  reference  of  bills,  is 
composed  of  ten  members — seven  representatives  and  three  sena- 
tors; and  usually,  of  eight  members  of  the  majority  and  two  of 
the  minority  political  party.    The  list  of  committees  is  given  here : 

On  agriculture,  appropriations  and  financial  affairs,  banks  and 
banking,  claims,  commerce,  counties,  education,  federal  relations, 
Indian  affairs,  inland  fisheries  and  game,  insane  hospitals,  interior 
waters,  judiciary,  labor,  legal  affairs,  library,  manufactures, 
mercantile  affairs  and  insurance,  military  affairs,  mines  and  min- 
ing, pensions,  public  buildings  and  grounds,  public  health,  rail- 
roads and  expresses,  reference  of  bills,  salaries  and  fees,  school  for 
feeble  minded,  sea  and  shore  fisheries,  state  lands  and  forest  pres- 
ervation, state  prison,  state  school  for  boys,  state  school  for  girls 
and  women's  reformatory,  taxation,  telegraphs  and  telephones, 
temperance,  towns,  ways  and  bridges. 

Executive 

"Executive  Powers"  is  the  title  of  article  V — part  first  of  which 
states : 

Sec.  1.  The  supreme  executive  power  of  this  state  shall 
be  vested  in  a  governor. 

Sec.  8.  He  shall  nominate  and,  with  the  advice  and  con- 
sent of  the  council,  appoint  all  judicial  officers,  coroners  and 
notaries  public;  and  he  shall  also  nominate,  and  with  the 
advice  and  consent  of  the  council,  appoint  all  other  civil  and 
military  officers,  whose  appointment  is  not  by  the  consti- 
tution or  shall  not  by  law  be  otherwise  provided  for. 

Sec.  9.  He  shall  from  time  to  time  give  the  legislature 
information  of  the  condition  of  the  state,  and  recommend 
to  their  consideration  such  measures  as  he  may  judge 
expedient. 

1  See  pngc  42. 

8 


GOVERNMENTAL     ORGANIZATION     AND     OPERATION 

Sec.  10.  He  may  require  information  from  any  military 
officer  or  any  officer  in  the  executive  department,  upon  any 
subject  relating  to  the  duties  of  their  respective  offices. 

Sec.  12.  He  shall  take  care  that  the  laws  be  faithfully 
executed.1 

As  noted  above,  execution  of  laws  in  certain  cases  is  delegated 
to  officials  chosen  by  the  legislature.  The  attorney  general, 
makes  important  legal  prosecutions  on  the  part  of  the  state,  is 
one  of  these  officials.  Under  such  a  situation  it  is  conceivable 
that  the  governor  might  have  difficulty  in  taking  care  "that  the 
laws  be  faithfully  executed/' 

Perhaps  the  most  distinctive  body  from  the  point  of  view  of 
state  organization  is  the  council,  which  is  provided  for  in  the 
constitution,  article  V — part  second,  in  the  following  terms: 

Sec.  1.  There  shall  be  a  council,  to  consist  of  seven  per- 
sons, citizens  of  the  United  States,  and  residents  of  this 
state,  to  advise  the  governor  in  the  executive  part  of  govern- 
ment, whom  the  governor  shall  have  full  power  at  his  dis- 
cretion to  assemble.     .     .     .2 

Reference  may  also  be  made  at  this  point  to  the  provision  in 
sec.  4,  part  fourth  of  article  V  entitled  "Treasurer"  which  states: 

No  money  shall  be  drawn  from  the  treasury,  but  by  war- 
rant from  the  governor  and  council,  and  in  consequence  of 
appropriations  made  by  law,  and  a  regular  statement  and 
account  of  the  receipts  and  expenditures  of  all  public  money, 
shall  be  published  at  the  commencement  of  the  biennial 
session  of  the  legislature.3 

The  greatest  powers  delegated  to  the  council  are  those  of  advis- 
ing and  consenting  to  the  appointments  of  the  governor  and  of 
authorizing,  also  in  conjunction  with  the  governor,  all  payments 
from  the  treasury.  Alone  the  council  is  powerless,  but  considered 
as  a  part  of  the  executive  department  along  with  the  governor,  it 
is  a  body  with  considerable  weight  and  influence.  Ordinarily  the 
nomination  by  the  governor  of  a  person  to  an  administrative  office 
is  accepted  by  the  council  and  the  best  informed  officials  at 
Augusta  today  do  not  know  of  any  case  in  which  a  serious  dead- 
lock between  the  governor  and  council  has  occurred.4     A  letter 


1  The  Revised  Statutes  of  the  State  of  Maine,  Portland,  1916. 

2  Ibid. 

3  Ibi^. 

4  Opinion  of  George  W.  Leadbetter  (for  many  years  messenger  to   the 

governor  and  council),  April  4,  1917. 

9 


THE     GOVERNOR'S     BUDGET     IN     MAINE,     1917 


from  the  assistant  attorney  general  Mr.  Franklin  Fisher,  dated 
October  24,  1917  states  the  situation  very  precisely: 

If  the  council  in  this  state  refuses  to  confirm  a  nomination 
of  the  governor  to  a  public  office,  the  nomination  is  effect- 
ually blocked.  If  the  council  refuses  to  sign  warrants  upon 
the  treasury  with  the  governor,  the  warrant  will  not  be  the 
one  contemplated  by  the  constitution  and  no  money  can  be 
paid  out  upon  it.  I  know  of  no  case  where  the  differences 
between  the  governor  and  council  were  carried  into  court. 
Their  differences  usually  result  in  some  sort  of  a  working 
agreement.  Further,  I  do  not  remember  any  case  where  the 
council  was  of  one  party  and  the  governor  of  another,  al- 
though it  can  happen. 

From  the  records  of  the  Maine  constitutional  convention  of 
1819,  it  appears  that  this  council,  sometimes  termed  a  ''useless 
appendage"  to  the  government,  was  copied  from  Massachusetts. 
An  attempt  was  made  to  eliminate  this  body  but  for  reasons  of 
economy  it  was  retained.  Members  of  the  convention  who  had 
had  experience  with  the  council  in  Massachusetts  testified  that 
they  knew  of  no  other  body  of  men  under  the  constitution  of  that 
state  who  performed  so  much  and  such  important  service  at  so 
small  an  expense.  Mr.  Whitman  made  the  following  remarks 
with  regard  to  the  council,  which  are  of  particular  interest  here: 

Advising  in  relation  to  appointments  is  but  a  trifling  part, 
comparatively,  of  their  duty.  To  the  public,  however,  this 
has  seemed  to  be  the  sole  object  of  having  such  a  body.  It 
should  be  remembered  that  no  money,  for  any  purpose  what- 
ever, can  be  drawn  from  the  treasury,  but  by  warrant  from 
the  governor  with  the  advice  of  council.  Such  a  check  upon 
the  issues  from  the  treasury,  must  be  lodged  somewhere.  In 
the  treasury  of  the  United  States  these  checks  and  safeguards 
are  numerous.  Whoever  makes  a  claim  upon  that  treasury, 
must  present  the  evidences  of  his  right  of  claim  to  the 
auditor,  who  examines  it,  and,  if  deemed  by  him  to  be 
just  and  legal,  it  is  next  submitted  to  the  comptroller. 
If  he  should  be  satisfied  of  its  justice  also,  he  will  add 
his  certificate  to  that  of  the  auditor,  all  which  must  be 
delivered  to  the  treasurer,  who  causes  a  warrant  to  be 
made  out,  which,  signed  by  all  those  officers,  and,  finally, 
approved  by  the  secretary  of  the  treasury,  will  enable  the 
applicant  to  get  his  money.  We  have  made  provision  for 
none  of  these  safeguards  for  our  treasury.  The  governor 
and  council  have  heretofore  been  found  competent  in  this 
st  ate,  and  this  is  the  cheapest  establishment  we  can  have  for 
such  a  purpose.  The  council  have,  constantly,  a  standing 
committee  of  their  body,  entrusted  with  this  branch  of  busi- 

10 


GOVERNMENTAL     ORGANIZATION     AND     OPERATION 

ness.  Every  application  for  money  from  the  treasury,  is 
referred  to  this  committee,  who  hear  the  applicant,  or  exam- 
ine his  documents,  and,  having  ascertained  the  facts,  report 
them  to  the  governor  and  council,  with  an  opinion  as  to  the 
justice  or  injustice  of  the  claim.  If  just,  and  the  report  be 
accepted,  a  warrant  issues — otherwise  not.  It  is  manifest 
that  the  governor  could  not,  alone,  attend  to  all  this,  and  I 
presume  we  shall  not  find  it  for  the  interest  of  the  state  to 
establish  an  auditor's  office,  with  his  clerks  and  other  expenses, 
in  lieu  of  a  council,  which  would  not  cost  a  quarter  part  as 
much.  This  power  over  the  treasury  must  be  lodged  some- 
where. It  will  not  do  to  allow  the  treasurer  to  determine 
what  claims  ought  to  be  paid,  and  to  pay  them  at  his  discre- 
tion. 

Dr.  Rose,  however,  disputed  the  value  of  the  council  as  a  pro- 
tection to  the  treasury,  stating  that  it  enabled  the  governor  to 
divide  his  responsibility  and  that  everything  depended  on  the 
treasurer.  He  said  he  knew  of  no  state,  other  than  Massachu- 
setts, which  had  had  its  treasury  plundered,  yet  it  was  almost 
the  only  one  that  had  a  council.1 

It  therefore  appears  that  the  position  of  the  council  with 
regard  to  the  financial  management  of  the  state  has  not  changed 
much  during  the  last  hundred  years. 

No  provision  has  yet  been  made  in  the  constitution  for  the 
office  of  auditor,  the  only  executive  position  besides  that  of  gov- 
ernor which  is  filled  directly  by  the  people,  and  this  basic  instru- 
ment provides  for  only  a  few  of  the  appointive  offices :  secretary  of 
state,  treasurer,  attorney  general  and  four  major  generals 
to  be  filled  by  the  legislature;  and  the  adjutant  general  to  be 
named  by  the  governor.2  All  other  offices  which  require  separate 
items  in  Governor  Milliken's  budget  are  maintained  in  accordance 
with  statutes  except  that  of  pension  clerk. 

As  will  be  seen  by  reference  to  the  chart  on  the  organization  of 
the  government,  administrative  officials  are  appointed  in  four 
ways:  (a)  by  the  auditor,  with  the  advice  and  consent  of  the  gov- 
ernor and  council;  (b)  by  the  governor  alone;  (c)  by  the  governor^ 

1  Debates  of  the  Convention  of  Delegates,  Jeremiah  Perley,  Portland,  1S20. 

2  The  section  of  the  Constitution  which  refers  to  the  major  generals  "while 
still  in  force  is  inactive,  as  in  these  days  the  militia  although  enrolled,  is  not 
organized  or  officered.  Commissioned  officers  of  the  national  guard  are  selected 
as  provided  by  the  constitution  and  should  the  national  guard  of  this  state 
ever  be  of  such  strength  as  to  constitute  a  division,  or  should  the  militia  be 
organized  and  called  into  active  service,  the  major  generals  to  command  them 
would  undoubtedly  be  selected  in  accordance  with  the  constitution." — Letter 
dated  November  3,  1917  from  Charles  E.  Davis,  Major  A.  G.  in  the  absence  of 
the  adjutant  general. 

11 


THE     GOVERNOR'S     BUDGET     IN     MAINE,     1917 


with  the  advice  and  consent  of  the  council;  and  (d)  by  the  house 
and  senate  in  joint  session. 

Most  of  the  administrative  officials,  as  the  chart  shows  are  ap- 
pointed by  the  governor  and  council.  Why  the  commissioner  of 
agriculture  is  not  thus  chosen  and  why  the  live  stock  sanitary 
commissioner  who  was  before  1917  appointed  by  the  commissioner 
of  agriculture  is  now  selected  by  the  governor  are  matters  which 
theory  can  probably  not  settle. 

Although  the  auditor,  whose  office  was  not  established  until 
1907,  is  elected  as  an  independent  official,  he  is  nevertheless  rec- 
ognized by  statute  as  a  part  of  the  executive  department  and 
ordered  to  carry  out  his  duties  under  the  supervision  of  the  gover- 
nor and  council.  Sec.  89,  chapter  2  of  the  revised  statutes  1916 
reads  as  follows: 

The  state  auditor  shall,  annually,  in  the  month  of  January, 
examine  the  books,  accounts  and  vouchers  of  the  treasurer 
of  state,  and  report  the  result  of  such  examination  to  the 
governor  and  council.  He  shall  comply  with  all  regulations 
in  relation  to  the  duties  of  his  office  which  may  be  trans- 
mitted to  him  by  the  governor  and  council,  and  which  are 
consistent  with  the  provisions  of  sections  eighty-one  to  ninety- 
two,  both  inclusive,  of  this  chapter.  The  books,  accounts, 
and  other  records  and  papers  in  his  office  relating  to  the 
public  business  shall  be  open  for  inspection  to  the  citizens 
of  this  state  at  all  reasonable  times  and  for  all  proper  pur- 
poses. 

Permanent  administrative  bodies  and  officials  appointed  by  the 
governor,  with  the  advice  and  consent  of  the  council,  are  listed 
herewith : 

(1)  With  one-man  head  (15): 

Superintendent  of  schools  Messenger  to  the  governor  and 

Insurance  commissioner  council 

Bank  commissioner  Superintendent  of  buildings 

Land  agent  and  forest  commis-  Agents  of  Indian  tribes  (2) 

sioner  Inspector  of  dams  and  reser- 

Commissioner  of  labor  and  in-  voirs 

dustry  and  state  factory  in-  State  historian 

spector  Assayer  of  ores  and  metals 

Commissioner  of  inland  fisher- 
ies and  game 

State  librarian 

Pension  clerk 


12 


GOVERNMENTAL    ORGANIZATION     AND     OPERATION 


(2)  With  more  than  one  man  at  the  head  (21) 


State  highway  commission 
Commission  of  sea  and  shore 

fisheries 
Board  of  state  assessors 
Public  utilities  commission 
Department  of  health 
State   Board  of   charities   and 

correction 
Prison  commissioners 
Industrial  accident  commission 
Commissioners  of  pharmacy 
State  library  commission 
State  board  of  dental  examiners 
State  board  of  arbitration  and 

conciliation 
Pemaquid     or    Fort    William 

Henry  commission 


Commissioners  for  promotion 
of  uniformity  of  legislation 
in  the  United  States 

State  board  of  registration  of 
medicine 

State  board  of  veterinary  ex- 
aminers 

State  board  of  examiners  to 
regulate  the  practice  of  em- 
balming 

State  board  of  accountancy 

Maine  state  board  of  registra- 
tion and  examination  in  op- 
tometry 

State  board  of  examination  and 
registration  of  nurses 

Inspectors  of  steamboats 


(3)  State  institutions  (boards  of  trustees  appointed)  (8) 


University  of  Maine 

State  normal  schools 

State  hospitals  (for  the  insane) 

Juvenile  institutions 

Tuberculosis  sanatoriums 


Maine  school  for  the  deaf 
Bath   military  and   naval   or- 
phanage 
State  reformatory  for  women 


All  of  the  officials  or  institutions  named  above  draw  appropria- 
tions from  the  state  government  with  the  exception  of  the  last 
official  in  the  first  group,  and  the  last  six  bodies  in  the  second. 

Certain  boards  made  up  entirely  in  an  ex  officio  manner  are  not 
shown  on  the  chart,  but  are  listed  here: 

Farm  lands  loan  commissioners  (governor,  auditor,  land 
agent,  commissioner  of  agriculture,  state  superintendent  of 
schools),  trustees  of  the  state  library  (governor  and  council), 
Maine  mining  bureau  (land  agent,  commissioner  of  agri- 
culture, and  commissioner  of  labor  and  industry),  state  board 
of  mothers'  aid  (board  of  charities  and  correction)  —  4. 

As  the  budget  director  does  not  hold  office  by  virtue  of  any 
statute  and  as  he  is  appointed  for  temporary  service  only,  his 
office  is  not  shown  on  the  chart. 

All  officers  elected  by  the  people  serve  a  term  of  two  years,  as 
do  those  elected  on  joint  ballot  by  the  senate  and  house  of  repre- 
sentatives, with  the  exception  of  the  major  generals.1  For  all  other 
officers  the  law  provides  a  term  of  four  years  but  there  are  a  large 
number  of  exceptions  among  which  the  more  important  are  as  fol- 

irThe  Secretary  of  Agriculture  now  serves  four  years.  (Laws  of  1917, 
Chap.  201.) 

13 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


lows :  2  years — adjutant  general,  commissioner  of  agriculture  (until 
1919);  3  years — state  superintendent  of  schools,  state  librarian, 
commissioner  of  labor  and  industry  and  state  factory  inspector, 
state  highway  commissioners,  two  of  the  three  commissioners 
of  inland  fisheries  and  game,  members  of  the  industrial  accident 
commission,  commissioners  of  sea  and  shore  fisheries,  state  park 
commissioners;  5  years — inspectors  of  steamboats,  members  of 
the  state  board  of  charities  and  correction;  6  years — members 
ot  the  board  of  state  assessors,  commissioner  of  health,  prison 
commissioners;  7  years — members  of  the  public  utilities  com- 
mission. Members  of  the  boards  of  trustees  of  the  various  state 
institutions  serve  terms  of  from  four  to  seven  years.  In  the  case 
of  most  of  the  boards  and  commissions,  the  members  serve  in 
systematic  rotation,  only  one  or  two  going  out  of  office  at  a 
time.1 

All  these  officials,  however,  do  not  always  have  the  privilege 
of  serving  out  their  full  terms  for  article  IX  of  the  constitution 
contains  the  following  provisions: 

Sec.  5.  .  .  .  Every  person  holding  any  office,  may  be 
removed  by  the  governor,  with  the  advice  of  the  council,  on 
the  address  of  both  branches  of  the  legislature  .  .  .  but 
the  reason  for  such  action  must  be  entered  on  the  legislative 
journals  and  a  hearing  must  be  given. 

Sec.  6.  The  tenure  of  all  offices,  which  are  not  or  shall 
not  be  otherwise  provided  for,  shall  be  during  the  pleasure 
of  the  governor  and  council. 

In  the  case  of  the  following  officials,  statutes  provide  that 
removal  shall  be  for  cause  only:  bank  commissioner,  commis- 
sioners of  sea  and  shore  fisheries,  commissioner  of  health,  secre- 
tary of  the  treasury,  inspectors  of  steamboats,  members  of  the 
state  boards  of  veterinary  examiners,  of  registration  and  exam- 
ination in  optometry,  of  examination  and  registration  of  nurses, 
and  members  of  the  boards  of  trustees  of  state  institutions. 
Only  on  "  proven  charges"  may  the  governor  and  council  remove 
a  member  of  the  state  board  of  dental  examiners. 

Judicial 

Justice  is  administered  by  judges  appointed,  as  are  the  chief 
administrative  officials,  by  the  governor,  by  and  with  the  advice 
and  consent  of  the  council.  Their  authority  is  thus  set  forth  in 
the  constitution: 


1  The  Revised  Statutes  of  the  State  of  Maine,  Portland,  1916,  Chap.  2,  Sec.  41. 

14 


GOVERNMENTAL     ORGANIZATION     AND     OPERATION 

Sec.  1.  The  judicial  power  of  this  state  shall  be  vested  in 
a  supreme  judicial  court  and  such  other  courts  as  the  legis- 
lature shall  from  time  to  time  establish. 

Sec.  2.  The  justices  of  the  supreme  judicial  court  shall, 
at  stated  times  receive  a  compensation,  which  shall  not  be 
diminished  during  their  continuance  in  office.     .     . 

All  judges  are  appointed  for  seven  year  terms. 
Statutory  provision  is  made  for  a  court  reporter,  who  shall  be 
appointed  by  the  governor  and  council  in  case  of  a  vacancy. 


15 


CHAPTER   III 

FINANCIAL    LEGISLATION    AND    CONTROL    BEFORE 

THE   1917  REGIME 


Estimates 

Since  1907  the  auditor  has  been  required  to  submit  to  the  leg- 
islature estimates  of  expenditures  as  filed  with  him  by  the  various 
governmental  departments,  state  institutions,  commissions  and 
boards  of  trustees.  These  estimates  which  must  be  "in  detail" 
are  to  be  filed  with  the  auditor  by  the  first  Monday  of  December. 
The  law  also  reads  (revised  statutes  1916,  chapter  2,  sec.  92) : 

This  estimate  shall  be  divided  into,  first,  fixed  charges;  sec- 
ond, other  charges;  third,  extraordinary  or  unusual  expenses. 
A  written  statement  showing  the  reason  for  all  estimated 
expenditures,  other  than  fixed  charges,  shall  be  filed  with 
said  estimate.  Said  auditor  shall  tabulate  these  statements 
under  the  various  heads  and  biennially  on  or  before  the 
fifteenth  day  of  January  shall  submit  to  the  legislature  a 
report  showing  these  tabulated  statements,  including  the 
reasons  given  for  estimated  expenditures,  other  than  fixed 
charges,  together  with  an  estimate  for  each  of  the  two  follow- 
ing years  of  the  ordinary  revenues  of  the  state,  and  of  such 
other  means  as  the  auditor  may  be  able  to  point  out  for  de- 
fraying the  expenses  of  the  state,  so  that  said  report  shall 
show  the  estimated  revenues  and  income  of  the  state,  and 
the  estimated  expenditure  of  the  state  for  each  of  the  two 
following  years.     .     .     . 

The  statute  quoted  above  was  passed  in  1907. 

In  1911,  a  similar  requirement  (amended  in  1915)  was  made  for 
all  corporations,  associations  and  institutions  which  received 
appropriations  from  the  state.  Thus  the  significant  part  of 
this  later  requirement  (sec.  93,  chapter  2,  revised  statutes  1916) 
reads : 

The  state  auditor  may,  from  time  to  time,  require  any 
such  corporation,  association  or  institution  to  report  to  him 
as  to  such  fiscal  affairs  as  he  may  deem  necessary  for  the 
proper  compilation  of  the  tabulation  provided  in  the  follow- 
ing section.  Elach  of  the  reports  and  statements  of  desired 
appropriation  which  is  made  shall  be  in  such  form  as  may  be 
prescribed  by  the  state  auditor,  and  shall  be  public  records. 

Section  94  of  the  same  chapter  provides  for  the  tabulation  of 
the  statements  and  reports  mentioned  in  sec.  93  before  Dec.  15 

16 


FINANCIAL     LEGISLATION     AND     CONTROL     BEFORE     1917 


stating  that  they  shall  be  "  accompanied  by  comparative  data  and 
estimates,  together  with  such  comments  and  a  statement  of  such 
other  matters  as  he  (the  auditor)  shall  deem  necessary  and  proper 
for  the  full  understanding  of  such  tabulation.  "  This  tabulation 
is  to  be  submitted  to  the  governor  and  legislature  on  the  first  day 
of  the  session.  Before  that  time  it  has  not  been  uncommon  for 
the  newspapers  to  use  material  contained  in  the  estimates.  To 
illustrate  the  publicity  thus  occasionally  given  to  the  demands 
upon  the  state  treasury,  an  item  from  the  Kennebec  Journal  for 
December  14,  1916  is  given  below: 

SEA  AND   SHORE   FISHERIES  WILL  ASK  $65,000  YEARLY 

The  department  of  sea  and  shore  fisheries  will  ask  the 
coming  Legislature  for  an  appropriation  of  $65,000  for  each 
of  the  years  1917  and  1918,  according  to  a  statement  filed 
Wednesday  at  the  State  Auditor's  office  by  William  Brennan 
of  Port  Clyde,  the  commissioner  of  sea  and  shore  fisheries. 
The  receipts  of  the  department  are  estimated  at  $4,000  for 
each  of  the  years  1917  and  1918. 

This  amount  asked  for  is  divided  as  follows:  Wardens, 
$20,000;  maintenance  of  patrol  boats,  $6,000;  purchase  or 
building  of  two  additional  patrol  boats  and  maintenance  of 
the  same,  $15,000;  printing  and  binding,  $200;  protection  of 
lobsters  with  eggs  attached,  $15,000;  purchasing  of  lobsters 
for  liberation,  $5,000;  propagation  of  shell  fish,  $200. 

The  statement  containing  the  estimates  says  in  part: 

"The  increasing  value  of  the  lobster  fisheries  would  seem 
to  warrant  sufficient  appropriation  for  proper  conservation 
of  the  industry. 

"The  herring  industry  is  of  greater  value  than  any  other 
branch  of  fisheries  and  its  present  satisfactory  condition  is 
caused  by  the  active  efforts  of  the  wardens. 

"The  alewives,  smelts,  salmon  and  other  migratory  fish 
require  at  times  special  warden  service. 

"The  short  time  that  the  patrol  boats  were  in  commission 
proved  their  worth.  The  two  additional  boats  recommended 
would  be  of  great  aid  to  the  departments. 

"It  is  claimed  by  many  of  the  fishermen  that  the  present 
methods  of  the  United  States  hatchery  in  the  handling  of 
the  fry  are  injurious  and  they  favor  the  liberating  of  the  egg 
bearing  lobster  when  caught  unless  a  proper  rearing  station 
is  provided.  To  allow  for  this  they  recommend  the  purchase 
by  the  department,  at  market  price,  marking  as  state  prop- 
erty and  the  enactment  of  stringent  law  for  protecting  after 
liberation. 

"  The  department  is  in  favor  of  a  fair  trial  of  the  two  meth- 
ods of  propagation  and  recommends  appropriations  for 
both." 

3  17 


THE     GOVERNOR'S    BUDGET    IN     MAINE,     1917 


In  accordance  with  the  provisions  of  law  noted  above,  blank 
estimate  sheets  are  sent  out  by  the  auditor  late  in  October  every 
other  year,  stating  in  full  what  information  is  desired  and  specify- 
ing that  the  estimates  be  made  in  detail.  But  the  auditor  has  no 
power  to  change  these  estimates  no  matter  in  what  form  they  are 
received.  As  they  come  in,  therefore,  they  are  compiled  and  pub- 
lished, the  original  sheets  being  kept  on  file  in  the  auditor's  office. 
The  printed  report  gives  in  columns  parallel  with  the  estimates,  the 
appropriations  made  by  the  last  legislature  and  the  actual  expend- 
itures during  the  two  fiscal  years  last  completed.  At  the  end  of 
the  report  is  given  a  classified  statement  of  the  actual  receipts  for 
the  two-year  legislative  period  just  closing  (the  last  month's 
receipts  being  estimated  and  included),  and  a  summary  of  actual 
and  estimated  receipts  and  expenditures  for  the  two-year  legis- 
lative period  just  closing  and  that  about  to  begin.  An  estimate 
of  the  necessary  tax  rate  to  meet  the  expenses  of  the  next  biennial 
period  is  also  included. 

The  state  auditor  in  submitting  his  estimates  in  1915,  in  addi- 
tion to  complaining  that  the  law  does  not  give  sufficient  time  for 
compilation  of  these  figures,  made  the  following  remarks: 

This  report  aims  to  give  the  legislature  information  rela- 
tive to  financial  facts.  It  aims  to  help  the  legislature  in 
determining  policies,  in  working  out  a  definite  fiscal  program 
and  in  the  drafting  of  appropriation  measures.  Appropria- 
tions for  the  future  should  be  controlled  by  intelligent  esti- 
mates. 

It  is  the  purpose  of  this  report  to  aid  in  enforcing  responsi- 
bility for  administration  and  in  bringing  about  greater 
efficiency.  If  efficiency  and  economy  are  desired  they  can 
be  brought  about  only  where  affairs  of  state  are  administered 
by  responsible  officers.  Officers  can  not  be  responsible  for 
results  unless  they  are  given  reasonable  opportunity  to 
exercise  judgment  in  administering  affairs  in  their  charge. 

This  report  does  not  demand  the  passage  of  the  informa- 
tion contained  therein.  It  is  adaptable  to  such  a  measure,  but 
it  has  been  designed  on  the  theory  that  separate  appropria- 
tions should  be  made  for  each  department,  board  or  com- 
mission and  institution  of  the  State. 

This  report  does  not  increase  any  appropriation,  neither 
does  it  decrease  any.  The  legislature  alone  has  the  power 
to  increase  or  decrease  the  appropriation  amounts. 

A  liberal  use  of  this  report  will  aid  the  legislature  in  express- 
ing its  will  in  definite  understanding  of  appropriation  meas- 
ures. 

This  report  shows  all  requests  presented  to  this  office  for 
new  appropriations  and  is  therefore  a  valuable  book  of  in- 

18 


FINANCIAL    LEGISLATION     AND     CONTROL    BEFORE     1917 

formation  for  the  legislature  to  use  in  determining  the  prep- 
aration of  the  appropriations.1 

Routine  of  Legislative  Procedure  on  Financial  Measures 

With  this  information  with  reference  to  the  financial  condition 
of  the  state  at  hand,  the  legislature  assembles  on  the  first  Wednes- 
day of  January  of  every  odd-numbered  year  for  the  purpose  among 
other  things,  of  making  appropriations  for  two  years  and  of 
providing  the  funds  with  which  to  meet  them.  No  definite, 
well-rounded  program  is  presented  to  them  for  action.  They 
have  before  them  only  the  requests  of  various  departments  and 
institutions  and,  of  course,  the  heads  of  such  bodies  in  making 
their  requests  do  not  take  into  consideration  the  demands  of  all 
the  other  state  activities.  It  may  not  thus  be  surprising  if 
the  estimates  are  before  long  near  the  bottom  of  the  legislator's 
desk,  lost  in  a  mass  of  printed  bills  and  calendars.  How  could 
he  be  expected  to  attempt  the  careful  scrutiny  of  appropriations 
when  his  constituents  are  demanding  a  new  piece  of  road  in  the 
home  town  and  his  county  associates  are  trading  five  thousand 
feet  of  road  for  the  support  of  a  campaign  for  the  greater  protec- 
tion of  lobsters? 

In  1915,  the  auditor's  estimates  were  received  on  January  13 
and  referred  to  the  committee  on  reference  of  bills;  on  January 
21,  they  were  referred  to  the  committee  on  appropriations.2  No 
other  reference  to  them  was  found  in  the  journal  either  of  the 
house  or  of  the  senate  for  that  session. 

The  early  days  of  the  legislative  session  are  usually  devoted 
to  organization  of  committees  and  preparation  of  bills,  a  per- 
formance which  keeps  many  of  the  legislators  in  actual  idleness. 

At  some  sessions  this  period  of  inactivity  has  been  so  pro- 
longed that  members  have  become  disgusted,  returned  to 
their  homes  and  have  been  brought  back  to  their  legislative 
duties  only  after  the  most  earnest  importunities.  ...  It 
might  last  the  whole  of  the  month  of  January  so  that  it  has 
been  no  uncommon  thing  for  a  legislature  not  to  begin  real 
work  until  February.3 

In  general,  appropriation  measures  are  passed  like  other  acts  and 
"resolves"  but  tradition  has  been  responsible  for  a  certain  amount 
of  compilation  of  financial  measures  in  transit  through  the  legis- 


1  State  Auditor's  Tabulation  of  Estimated  Expenditures  and  Income  1917- 
1918,  Waterville,  1916,  pp.  3,  4. 

2  Senate  Journal,  1915. 

3  Kennebec  Journal,  December  15,  1916. 

19 


THE     GOVERNOR'S     BUDGET     IN     MAINE,     1917 


lative  channels.  Some  expenditures  are  recognized  in  the  stat- 
utes as  of  a  permanent  character  and  they  are  passed  by  the 
legislature  once  only,  as  "acts";  all  other  appropriations  are 
ordinarily  passed  twice  by  the  legislature,  once  (each  appropria- 
tion separately)  as  "resolves''  and  again,  incorporated  into  an 
"act,"  which  may  also  contain  some  permanent  appropriations. 
Both  acts  and  resolves  receive  practically  the  same  treatment  in 
the  legislature,  although  a  resolve  in  the  house  has  one  less  reading 
than  an  act.  Both  are  ordinarily  introduced  into  either  house  by 
an  individual  member  and  immediately  referred  by  the  committee 
on  reference  of  bills  to  the  appropriate  joint  standing  committee. 
Only  such  appropriation  resolves  as  do  not  clearly  belong  to  some 
other  committee  would  be  sent  to  the  appropriation  committee  in 
the  first  instance.  Ordinarily,  as  has  been  said,  the  committee 
stage  is  the  important  one  for  all  bills.  Legislative  business  is 
too  vast  to  admit  of  the  careful  consideration  of  each  bill  by  each 
member  of  each  house.  This  responsibility  is  delegated  to  the 
committeemen  and  their  verdict  is  usually  accepted.  It  is  there- 
fore in  committee  that  the  large  share  of  work  in  securing  appro- 
priations is  done, — and  in  committee  is  most  evident  that  appro- 
priation or  log-rolling  game,  characterized  by  a  former  secretary 
of  state  in  the  following  terms:  "You  scratch  my  back  and  I'll 
scratch  yours."  These  committees  do  not  keep  stenographic 
records,  but  their  reports  to  the  house  and  senate  are  made  on 
printed  forms,  some  of  which  bear  the  appropriate  designation: 
"Ought  to  pass,"  "Ought  not  to  pass,"  "referred  to  next  legisla- 
ture," etc.     These  reports  are  filed  and  preserved. 

The  next  process  in  legislation  is  thus  prescribed  in  rule  10  of 
the  "Joint  Rules":1 


Every  bill  or  resolve  reported  in  either  house  by  a  com- 
mittee, or  laid  upon  the  table  by  leave,  shall  be  printed  and 
distributed  in  both  houses,  before  having  its  first  reading. 
The  printed  copies  shall  show  by  what  committee  the  bill  or 
resolve  was  reported,  or  by  what  member  laid  upon  the 
table.2 

Bills  and  resolves  after  printing,  are  placed  where  they  belong 
in  the  "Order  of  business"  and  their  position  there  shown  upon 
the  "Calendar,"  which  is  printed  daily  for  each  house.     Bills  are 


1  Senate  ami  House  Register  1917,  78th  Legislature. 

2  There  are  occasional  "suspensions"  of  this  rule,  especially  in  case  of  an 
emergency  appropriation  but  it  is  not  suspended  so  frequently  as  many  of  the 
other  rules. 

20 


FINANCIAL     LEGISLATION     AND     CONTROL     BEFORE     1917 

given  three  readings  in  the  house  and  two  in  the  senate;  resolves, 
two  readings  in  each  house.  A  " reading"  usually  consists  of  an 
oral  rendition  of  the  title  only.  The  value  of  an  additional  read- 
ing for  bills  in  the  house  may  be  judged  by  the  following  excerpt 
from  rule  54  of  the  "  Rules  of  the  house,"  as  published  in  the 
legislative  handbook: 

No  bill  shall  be  passed  to  be  engrossed  until  it  shall  have 
had  three  several  readings;  the  time  for  the  second  and  third 
readings  shall  be  assigned  by  the  house;  but  if  no  objection 
is  made,  the  second  reading  may  be  by  the  title,  and  at  the 
time  of  the  first.     .     .     . 

Legislative  rules  contain  certain  special  stipulations  with  refer- 
ence to  measures  carrying  appropriations.  They  are  quoted 
herewith  in  full : 

Rules  of  the  senate  No.  21.  No  resolve  of  any  kind,  or 
order  making  any  grant  of  money,  lands  or  other  public 
property  shall  be  passed  without  being  read  on  two  several 
days;  the  time  for  the  second  reading  shall  be  assigned  by 
the  senate.  Rules  of  the  house  No.  49.  All  resolves  ap- 
propriating money  or  land,  shall  have  their  second  reading  on 
such  day  subsequent  to  that  of  the  first  reading  as  the  house 
may  assign.  No.  51.  Every  bill  or  resolve,  providing  for 
the  grant  of  money,  land,  or  other  public  property,  which 
may  be  laid  on  the  table  by  leave,  and  any  report  of  a  com- 
mittee upon  any  bill  or  resolve  providing  for  such  grant,  shall 
be  accompanied  by  a  written  statement  of  facts  in  each  case ; 
and  no  such  bill  or  resolve  shall  be  considered  before  such 
statement  is  made,  or  pass  without  being  read  on  two  several 
days.  Joint  rules  No.  18.  Every  act,  resolve  or  order  appro- 
priating money,  shall  be  referred  to  the  appropriate  com- 
mittee for  consideration,  and  no  further  action  shall  be  had 
thereon  in  either  branch  until  the  same  shall  have  been  re- 
ported back  by  said  committee. 

None  of  these  rules  may  be  suspended  except  on  a  two-thirds 
vote. 

After  a  bill  or  resolve  has  passed  its  final  reading,  it  is  then 
engrossed,  i.e.  printed  in  final  form  in  large  type  on  large  size 
heavy  paper.  In  this  engrossed  form  it  must  be  presented 
again  to  both  branches  of  the  legislature  for  its  third  or  fourth 
consideration,  as  the  case  may  be.  Each  resolve  must  be  "finally 
passed"  and  each  bill  must  pass  "to  be  enacted"  in  each  house 
before  it  is  ready  for  transmission  to  the  governor  by  the  secre- 
tary of  the  senate.  The  governor  may  veto  any  bill  or  resolve  but 
he  can  not  veto  any  part  of  a  bill  or  resolve.    Appropriation  meas- 

21 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


ures  have  as  a  rule  been  incorporated  into  two  or  three  acts  and 
thus  presented  to  the  governor  for  final  action.  Even  though  he 
veto  a  separate  resolve,  therefore,  it  could  be  incorporated  in  the 
final  act  and  he  could  not  enforce  his  wishes  with  regard  to  that 
particular  item  without  throwing  out  the  entire  act. 

So  much  for  the  routine  of  legislative  procedure  on  financial 
measures.  The  result  of  this  procedure  deserves  at  least  a  word 
here.  In  the  opinion  of  one  observer  the  special  difficulty  with 
appropriation  bills  has  been  that  unimportant  acts  and  resolves 
were  often  passed  in  the  early  days  of  the  session  and  that  later, 
wrhen  really  important  measures  came  up  for  consideration,  the 
legislators  found  that  the  total  authorized  expenditure  was  in- 
creasing too  rapidly  and  consequently  many  worthy  items  were 
eliminated  in  the  closing  sessions.1 

Legislative  Action  in  1915 

During  the  1915  session  appropriation  bills  and  resolves  were 
acted  upon  about  as  usual,  except  that  the  governor  attempted  to 
stop  excessive  expenditures  by  fixing  an  arbitrary  limit  for  ap- 
propriations. This  limit  was  fixed  after  consideration  of  the 
appropriations  made  in  1913.  The  governor  made  it  understood 
that  he  would  veto  any  larger  amount.  Such  a  policy  (character- 
ized by  some  as  an  exhibition  of  the  " mailed  fist")  antagonized 
the  legislature  and  from  all  reports  available  it  did  little  to  keep 
down  the  funds  voted. 

Governor  Curtis  did,  however,  sign  a  law  which  provided  for 
more  scientific  financial  legislation  in  future  }^ears.  This  budget 
bill,2  was  introduced  in  the  house  on  March  13,  1915  by  Pierce  of 
Houlton  and  was  approved  by  the  governor  on  April  1,  1915. 
This  law  is  quoted  herewith  in  full,  especially  since  it  received 
scant  notice  both  before  and  after  its  passage  (italics  by  author) : 

Chapter  299 — An  act  directing  the  governor  and  council  to 
submit  to  each  legislature  the  approximate  amount  of  money 
necessary  to  defray  the  expenses  of  the  public  service. 

The  governor  and  council  shall  submit  to  each  legislature 
not  less  than  15  days  after  it  convenes,  an  estimate  in  detail, 
or  a  general  estimate  in  any  instance,  where  it  is  impracticable 
to  giv^e  specific  items,  sub-divided  under  appropriate  head- 
ings, of  such  sums  as  may  be  deemed  necessary  to  defray  the 
several  charges  and  expenses  of  the  public  service  for  the 


1  Kennebec  Journal,  December  14,  1916. 

2  Section  95,  chapter  2  of  the  revised  statutes  1916. 

22 


FINANCIAL    LEGISLATION     AND     CONTROL     BEFORE     1917 

current  and  succeeding  year.  This  estimate  shall  also  in- 
clude such  sums  as  may  be  deemed  necessary  for  charitable 
and  benevolent  institutions,  new  buildings  or  the  renovation 
of  old  buildings  of  state  institutions,  and  for  such  other  pur- 
poses for  which  public  money  may  be  properly  appropriated. 
It  shall  be  accompanied  by  a  statement  showing  the  total 
valuation  of  taxable  property  in  the  state  as  compiled  by  the 
board  of  state  assessors  and  the  rate  of  taxation  necessary  to 
produce  approximately  the  revenue  required  to  meet  such 
appropriations.  It  shall  also  show  the  estimated  income  of 
the  state  for  said  two  years  from  sources  other  than  direct 
taxation. 

This  was  presumably  a  real  step  in  advance.  Compliance 
with  the  spirit  of  the  law  would  conceivably  have  prevented  the 
mad  rush  over  the  adoption  of  appropriation  bills  which  was 
the  custom  at  the  end  of  each  legislative  session.  Here  is  the 
record  of  the  1915  session.     It  is  typical. 

Six  acts  carried  all  the  appropriations  for  the  years  1915  and 
1916.  The  legislature  met  on  the  first  Wednesday  of  January 
and  adjourned  at  4.48  p.  m.  on  Saturday,  April  3.1  The  first  gen- 
eral appropriation  act  for  1915  appeared  in  the  senate  on  March 
23  and  in  the  house  on  the  following  day.  In  the  senate  it  was 
read  twice  under  suspension  of  the  rules  (No.  21  above)  and  was 
passed  to  be  engrossed  without  reference  to  a  committee.  Amend- 
ments in  the  house  and  senate  were  given  consideration  on  two 
other  days.  The  bill  was  passed  to  be  enacted  in  both  houses  on 
April  2.  The  second  general  appropriation  act  for  1915  carrying 
over  $2,700,000  (slightly  larger  than  the  first)  had  a  much  more 
spectacular  career.  It  appeared  in  the  house  at  2  p.  m.  on  the 
day  of  adjournment  and  in  the  senate  one  hour  later.  Rules  were 
dispensed  with  and  the  bill  passed  its  several  readings  at  once. 
After  a  recess  of  five  minutes  the  bill  was  reported  as  engrossed 
and  it  was  enacted  therewith.  A  similar  record  could  be  given  of 
four  of  the  other  bills,  two  for  deficiencies,  one  for  legislative 
expenses  and  one  for  1916.  Not  one  of  the  six  bills  was  passed  to 
be  enacted  until  the  day  before  the  legislature  adjourned;  not  one 
was  introduced  into  either  house  before  March  23,  although 
it  must  be  remembered  that  resolves  were  constantly  under  con- 
sideration. The  largest  bill,  that  for  1916,  aggregating  over 
five  million  dollars  was  introduced,  put  through  its  several  read- 
ings, engrossed  and  enacted  in  both  houses  between  2  p.  m.  and 
4.48  p.  m.  on  the  day  of  adjournment.  Under  such  circumstances 
it  is  not  surprising  perhaps  that  the  night  before  adjournment 

1  Senate  and  House  Journals,  1915  Session. 

23 


THE     GOVERNOR'S     BUDGET    TN     MAINE,     1917 


should  be  a  strenuous  one  for  the  administrative  force  charged 
with  the  preparation  and  engrossing  of  the  bills.  On  that  occasion 
in  1915,  Governor  Curtis,  the  attorney  general,  the  messenger  to 
the  governor  and  council  and  other  officials  struggled  in  the  offices 
of  the  Kennebec  Journal  till  the  early  hours  of  the  morning  in  an 
attempt  to  get  the  bills  printed  in  correct  form1  and  after  all  their 
effort,  several  of  the  appropriation  figures  as  they  stand  today  in 
the  acts  and  resolves  of  1915  are  incorrect. 

This  stampede  came,  too,  after  a  strenuous  effort  in  the 
earlier  part  of  the  session  to  push  appropriation  matters  to  a 
decision.  On  January  20,  there  were  introduced  in  the  senate 
from  the  house,  two  orders,  one  providing  that  no  bill  or  resolve 
carrying  money  should  be  passed  before  March  1 ;  the  other,  that 
no  bill  or  resolve  carrying  money  should  be  introduced  after 
February  10.  On  that  day  they  were  both  tabled  and  on  the 
following  day,  the  first  was  " indefinitely  postponed"  by  the 
senate,  in  which  action  the  house  (after  some  debate)  concurred, 
on  February  2.2  On  January  22,  Representative  Greenleaf  of 
Portland  stated  that  it  was  the  purpose  of  this  first  order  "to 
ascertain  the  bulk  of  appropriations"  and  to  set  a  time  far  enough 
ahead  to  give  a  square  deal  to  all,  but  that  he  now  appreciated 
certain  inconveniences  in  that  program  and  therefore  receded 
from  his  former  position.3  The  second  order  met  the  same  fate 
at  a  later  date.  Thus  ended  the  fight  for  a  semblance  of  budget 
procedure  until  February  26  when  Representative  Pierce  of 
Houlton,  author  of  the  budget  act  of  that  same  session,  introduced 
another  order  which  provided  that  no  money  should  be  voted  in 
the  house  until  March  16.  He  said  similar  measures  had  been 
adopted  in  previous  sessions,  and  reviewed  the  situation  which 
made  such  a  procedure  advisable.4  His  fight  was  no  easy  one, 
but  after  shifting  the  date  to  March  18,  he  finally  secured  a  vote 
of  approval  in  the  house,  on  March  10.  The  tally  was  only  72  to 
65  in  his  favor,  however. 

On  March  11,  the  following  order  went  through  the  house: 

Ordered,  That  the  clerk  of  the  house  be  directed  to  prepare 

a  schedule  of  acts  and  resolves  carrying  an  appropriation  or 

involving  the  expenditure  of  money,  including  all  of  such 

acts  and  resolves  as  have  already  received  the  signature  of 

the  governor,  such  as  have  been  reported  to  the  house  or 

1  Conversation  with  George  W.  Leadbetter,  messenger  to  the  governor  and 
council. 

2  Senate  and  House  Journals,  1915  Session. 

3  Legislative  Record,  1915  Session. 

4  Senate  and  House  Journals,  1915  Session. 

24 


FINANCIAL     LEGISLATION     AND     CONTROL     BEFORE     1917 

senate  and  such  as  are  now  pending  before  committees. 
Said  schedule  shall  be  printed  and  a  copy  thereof  laid  on  the 
desk  of  each  member  on  or  before  March  16th.  The  clerk  is 
authorized  to  procure  and  pay  for  any  assistance  necessary 
to  the  preparation  of  such  a  schedule,  and  the  secretary  of 
each  committee  is  hereb}r  instructed  to  forthwith  prepare  a 
statement  of  such  work  of  his  committee  as  would  be  of  use 
in  preparing  such  a  schedule  and  file  the  same  with  the  clerk. 

Such  a  schedule  was  accordingly  prepared  and  printed,  bills 
and  resolves  being  classified  in  accordance  with  the  provisions 
of  the  order.     This  was  issued  as  House  Document,  No.  754. 

Control  of  the  Finances1 

By  passing  resolves  the  legislature  expresses  its  opinion  with 
reference  to  the  expenditure  of  public  funds  but  a  resolve  alone 
would  have  no  influence  in  extracting  the  state's  money  from  the 
treasurer.  Before  the  money  mentioned  in  a  resolve  is  available 
for  expenditure,  it  must  be  included  in  an  appropriation  act. 

The  introduction  to  a  typical  appropriation  act  reads  as  follows: 

In  order  to  provide  for  the  several  acts  and  resolves  of  the 
legislature  requiring  the  payment  of  money  from  the  state 
treasury,  and  also  to  provide  in  part  for  the  necessary  expend- 
itures of  government  for  the  current  fiscal  year  one  thousand 
nine  hundred  eighteen,  the  folio  \ving  sums  are  hereby  appro- 
priated out  of  any  moneys  in  the  state  treasury,  and,  except, 
where  otherwise  provided,  the  governor  with  the  advice  and 
consent  of  the  council  is  hereby  authorized  at  any  time  prior 
to  the  first  day  of  July,  one  thousand  nine  hundred  nineteen, 
to  draw  his  warrant  on  the  state  treasurer  for  the  same. 

Without  enacting  an  appropriation,  the  legislature  cannot 
sanction  any  expenditure  of  the  state's  funds.  Even  an  act, 
however,  is  not  an  order  upon  the  state  treasurer.  He  who  would 
obtain  funds  from  the  state  must  produce  more  evidence  still  to 
show  that  his  claim  is  good.  The  procedure  is  as  follows.  All 
bills  and  claims  of  any  kind  must  be  filed  with  the  auditor.  He 
puts  them  in  a  jacket  and  approves  the  manifest  or  certificate 
on  the  outside.  These  are  then  sent  to  the  governor  and  council. 
After  approval  by  the  finance  committee  of  the  council  and  the 
governor,  warrants  on  the  treasurer  are  signed  by  the  chairman 
of  the  finance  committee,  by  the  governor  and  by  the  secretary 
of  state.  Then  the  treasurer  will  honor  the  demand  thus  made 
upon  him.  Resolves  are  of  value  in  that  they  show  how  the 
legislature  desires  the  money  appropriated  in  the  acts  to  be  ap- 

1  Certain  changes  in  the  control  of  the  finances  inaugurated  since  Jan.  1, 
1917,  are  considered  on  pp.  99-103. 

25 


THE     GOVERNOR'S     BUDGET     IN     MAINE,     1917 


portioned.     This  apportionment  must  be  observed  unless  changed 
by  the  governor  and  council. 

The  auditor  holds  a  position  of  much  power  in  checking 
illegal  expenditures  and  of  much  opportunity  in  investigating 
all  state  expenditures.  His  exact  authority  and  position  may 
perhaps  best  be  shown  by  citing  the  statutes  concerned:1 

The  state  auditor  shall  examine  all  accounts  and  demands 
against  the  state,  including  all  matters  requiring  the  pay- 
ment of  money  from  the  state  treasury.  In  the  examination 
of  claims,  accounts  and  demands  he  may  require  affidavits 
that  articles  have  been  furnished,  services  rendered  and  ex- 
penses incurred,  as  therein  specified.  All  accounts  filed 
with  the  auditor  shall  be  fully  itemized.  He  shall  in  all  cases, 
after  he  has  approved  a  claim,  account  or  demand  make  a 
certificate  specifying  the  amount  due  and  allowed  thereon, 
the  name  of  the  party  to  whom  such  amount  is  due  or  pay- 
able, the  law  authorizing  the  same  and  the  particular  head, 
expenditure,  department  or  appropriation  to  which  it  is 
chargeable.  When  the  legislature,  by  express  statute,  author- 
izes a  board  of  trustees,  commission  or  public  officer  to 
approve  demands  against  the  state,  and  an  appropriation 
therefor  has  been  made,  the  auditor  shall,  when  such  accounts 
or  demands  are  properly  approved,  promptly  audit  and 
certify  as  aforesaid  such  accounts  as  he  may  deem  correct, 
not  exceeding  the  appropriation  for  that  purpose;  and  if,  upon 
such  audit  any  account  or  claim  is  rejected  or  reduced  in 
amount,  and  the  person  presenting  such  account  or  claim  is 
dissatisfied  therewith,  the  auditor  shall  report  the  same  to 
the  governor  and  council,  with  a  separate  certificate  therefor. 

Further  exposition  of  his  duties  is  given  in  section  84: 

The  auditor  shall  keep  a  distinct  account  of  all  state  re- 
ceipts and  expenditures  under  appropriate  heads.  He  shall 
investigate  all  accounts,  demands,  bills,  vouchers  or  claims 
against  the  state,  including  those  made  by  any  state  officer, 
department,  commission  or  trustee.  And  if,  after  said  in- 
vestigation, the  amount  demanded  seems  to  be  excessive  or 
improper,  he  may  reject  the  amount  or  claim,  in  whole  or  in 
part,  and  if  the  person  presenting  such  account  or  claim  is 
dissatisfied  therewith,  the  auditor  shall  report  the  same  to  the 
governor  and  council  with  a  separate  certificate  therefor. 

Additional  clauses  of  this  section  provide  that  the  auditor  shall 
keep  a  record  of  all  state  property,  have  free  access  to  the  books 
and  papers  of  all  departments  and  institutions,  direct  the  manner 
in  which  accounts  shall  be  kept  by  those  departments  and  institu- 

1  Revised  Statutes,  1916,  chap.  2,  sec.  82. 

26 


FINANCIAL     LEGISLATION    AND     CONTROL     BEFORE     1917 

tions  and  notify  their  heads  from  time  to  time  of  the  state  of  their 
appropriations.  It  is  also  provided  that  the  auditor  shall  approve 
no  account  in  excess  of  the  appropriation  but  shall  report  such 
bill  or  account  to  the  next  legislature. 

Severe  penalties  are  prescribed  in  section  100  for  any  head  of 
department  who  contracts  any  obligation  in  excess  of  his  appro- 
priation, but  the  state  auditor  is  allowed  to  advance  sums  not 
to  exceed  $2,000  to  pay  the  bills  of  state  institutions,  according 
to  sec.  98.  As  a  result  it  has  usually  been  necessary  at  each 
legislative  session  to  pass  deficiency  appropriation  measures, 
which  in  1915  amounted  to  about  $50,000. 

The  auditor  is  distinctly  an  administrative  official.  His  sole 
duty  is  to  see  that  the  law, — its  letter,  spirit  and  intent, — is  com- 
plied with. 

Quite  different  is  the  power  and  position  of  the  governor  and 
council.  It  will  be  noticed  that  the  appropriation  act  quoted  on 
page  25  reads  that  "the  governor  with  the  advice  and  consent  of 
the  council  is  hereby  authorized  ...  to  draw  his  warrant  on 
the  state  treasurer."  The  act  does  not  order  the  governor  and 
council  to  draw  warrants,  as  probably  many  members  of  the 
Maine  legislature  and  citizens  of  that  state  would  assert.  The 
power  of  the  executive  and  his  advisers,  with  respect  to  the  con- 
trol of  expenditures,  is  therefore  truly  enormous,  for  they  are 
justified  in  holding  up  any  sum  if  they  think  there  is  sufficient 
reason  for  so  doing.  At  one  time  it  was  even  announced  from 
the  executive  chamber  that  if  any  more  game  wardens  of  the 
opposite  political  faith  were  appointed,  no  warrants  would  be 
signed  for  the  payment  of  their  salaries, — and  the  big  stick  had 
its  effect.  Even  in  the  case  of  very  specific  appropriations,  it  is 
believed  on  the  highest  authority  at  Augusta  that  the  legislature 
would  have  no  remedy  in  law  against  the  executive,  for  the  court 
would  doubtless  refuse  to  issue  a  mandamus  against  the  governor. 

To  illustrate  the  manner  in  which  orders  are  issued  by  the 
governor  and  council,  the  following  excerpts  are  taken  from  the 
Kennebec  Journal  of  April  11,  1917: 

Council  Orders 

The  following  orders  are  among  those  recently  passed  by 
the  governor  and  council. 

That  the  minimum  and  maximum  wage  list  for  employes 
of  the  Augusta  state  hospital,  Bangor  state  hospital  and 
Maine  school  for  feeble  minded  as  prepared  by  the  board  of 
hospital  trustees  and  hereto  attached  are  hereby  approved, 

27 


THE     GOVERNOR'S     BUDGET     IN     MAINE,     1917 


with  the  provision  that  the  board  of  trustees  may  in  their 
discretion  make  any  changes  in  wages  between  the  minimum 
and  maximum  figures  and  that  all  changes  shall  be  promptly 
reported  to  the  governor  and  council  by  the  secretary  of  said 

board. 

The  state  auditor  on  April  6  reported  the  following  war- 
rants drawn;  No.  995,  1917  department  bills,  $122,189.25; 
No.  996,  1917  institutions,  $76,208.31;  No.  997,  legislative, 
$3,247.56;  No.  998,  state  contingent  fund,  $3,603.24;  No. 
999,  1916  balances,  $10,088.45;  No.  1000,  state  highway 
commission,  $6,268.72. 

That  there  be  paid  to  Charles  J.  Dunn,  treasurer  of  the 
university  of  Maine,  $31,875,  the  same  being  three-twelfths 
of  the  annual  appropriation  for  maintenance  for  said  institu- 
tion. 

That  Mrs.  Grace  A.  Wing,  member  of  the  state  board  of 
charities  and  corrections,  be  authorized  to  visit  charitable 
and  correctional  institutions  in  Massachusetts,  at  the  ex- 
pense of  the  state  for  hotel  bills  and  conveyances  between 
said  institutions. 

That  the  following  bills  for  services  and  expenses  in  con- 
nection with  work  performed  under  the  direction  of  the 
attorney  general  to  be  paid  from  the  appropriation  for  arrest 
and  apprehension  of  criminals:  Weston  Lewis,  Augusta, 
Feb.  21  to  March  3,  1917,  $46.70;  Joseph  S.  Carter,  Rich- 
mond, March  2  to  28,  1917,  $194.40. 

That  the  salaries  of  clerks  in  the  office  of  the  treasurer  of 
state  are  hereby  fixed  as  follows:  J.  B.  Bearce,  corporation 
clerk,  $108.33  per  month:  J.  B.  E.  Tartre,  wild  land  clerk, 
$108.33;  Jennie  Sewall,  check  clerk,  $75;  Ellen  B.  Dyer, 
stenographer  and  check  clerk,  $75;  all  from  Jan.  1,  1917. 

That  the  salary  of  each  hatchery  superintendent  in  the 
state  shall  be  fixed  at  $60  per  month,  beginning  April  1, 
1917. 

That  the  commissioner  of  sea  and  shore  fisheries  is  hereby 
authorized  and  directed  to  place  the  boat  " Pauline"  at  the 
disposal  of  the  lieutenant  in  charge  of  the  naval  recruiting 
station  at  Machias. 

In  addition  to  approving  certificates  submitted  by  the  auditor, 
the  governor  and  council  receive  from  each  legislature  an  annual 
appropriation  of  $10,000  as  a  contingent  fund  to  be  used  at  their 
discretion.  It  is  used  to  pay  executive  and  administrative  ex- 
penses and  items  which  have  been  omitted,  at  times  by  accident, 
from  appropriation  bills.  The  auditor's  report  for  1914  shows, 
as  one  item,  $5,923.18  paid  out  of  this  fund  to  "George  W.  Lead- 
better,  messenger.'1  The  entire  expenditures  from  this  fund  in 
1916  arc  given  by  the  auditor  as  follows: 

28 


FINANCIAL     LEGISLATION     AND     CONTROL     BEFORE     1917 


Contingent  Fund: 

Clerk  hire $624.29 

First  friends  and  advisers  to  paroled  prisoners  48 .  00 

Advertising 86.80 

Newspapers 85 .  95 

Expenses  of  governor  and  council 1,188 .  69 

Sundry  supplies  and  expenses 16.65 

Printing  for  auditor's  office 89.20 

Insurance  on  state  house 375 .  00 

E.  E.  Newbert 

Ac.  fish  screen,  Patten's  Pond 150.00 

Investigating  causes  of  fires 500.00 

Needy  blind 113.30 

Commissioners  of  pharmacy 361 .  11 

Highway,  town  of  Thomaston 2,000.00 

Adjustment  of  interest  on  lands  reserved 200.00 

Lamont  A.   Stevens,   services   rendered   governor 

and  council  during  1915  and  expenses  for  same  500 .  00 
Ira  E.  Pinkham,  agent  Penobscot  Indians,  refund 

on  stumpage 10 .  00 

Stock  for  printing 192.20 

Mary  S.  Hillman,  pension 500.00 

Kingfield,  part   of   expense   of   raising   grade   on 

Riverside  St 750. 00 

Harvey  S.  Chase  &  Co.,  public  accountants 460. 12 

Parker  T.   Pineo,  reimbursement  for  damage  to 

sheep 121.50 

There  are  of  course  certain  items  which  it  might  be  unwise  to 
specify  in  too  much  detail  and  the  governor  and  council  are  not 
required  to  make  any  minutely  itemized  report  on  the  expendi- 
tures made  from  this  contingent  fund.1 

Sections  57-80,  chapter  2  of  the  revised  statutes  are  chiefly 
concerned  with  the  treasurer's  bond,  with  the  permanent  invest- 
ment of  state  funds  and  with  the  issue  of  state  bonds.  A  monthly 
statement  showing  the  banks  in  which  moneys  of  the  state  have 
been  deposited  is  made  by  the  treasurer,  as  is  an  annual  report 
which  is  a  detailed  fiscal  statement  giving  a  record  of  all  cash 
receipts  and  expenditures,  of  all  bank  deposits  of  state  funds  at  the 
time  of  the  report,  and,  in  great  detail,  of  all  taxes  assessed  and 
paid.  An  itemized  statement  also  shows  for  each  town:  receipts 
from  dog  licenses,  apportionment  of  railroad  and  telegraph  tax, 
school  and  mill  fund,  common  school  fund  and  amount  of  state 
tax  assessed.  The  treasurer  is  strictly  a  banker,  however;  his 
concern  is  with  the  state's  funds  when  in  hand,  not  with  problems 

1  Statement  of  Governor  Milliken,  November  10,  1917. 

29 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


of  receipt  or  disbursement.     He  is  under  bond  not  to  abscond 
with  state  funds  or  misuse  his  trust. 

The  auditor  appears  on  the  scene  again,  not  to  supervise  ac- 
counts before  authorizing  payment,  but  to  check  up  payments 
already  made.     This  he  does  in  pursuance  of  section  90,  chapter 
2  of  the  revised  statutes  which  prescribes  in  detail  how  he  shall 
make  "a  full  and  accurate  statement  of  the  financial  condition  of 
the  state,  and  of  the  financial  transactions  thereof  for  each  of  the 
two  preceding  years     .     .     .     , "  and  specifying  that  "all  salaries 
and  other  general  charges  and  appropriations  shall  likewise  appear 
in  said  report;  no  expenditure  exceeding  $500  shall,  if  it  is  com- 
posed of  separate  items,  be  included  under  one  indefinite  head." 
This  report  is  to  be  submitted  to  the  legislature  on  or  before  the 
first  day  of  February.     The  auditor  also  makes  a  statement  to 
the  governor  at  the  end  of  every  month  showing  the  cash  re- 
ceipts and  expenditures  for  that  period.     He  is  also  required  by 
section  89  of  the  same  chapter  to  audit  the  books,  accounts  and 
vouchers  of  the  treasurer  of  state  and  "report  the  result  of  such 
examination  to  the  governor  and  council. "     This  auditor's  report 
shows  receipts  and  expenditures  in   detail  for  each  year,   the 
status  of  all  appropriations  and  a  balance  sheet  for  each  year. 
In  a  general  way  it  might  be  said  that  the  treasurer's  report 
gives  detail  with  reference  to  taxes  similar  to  that  which  the 
auditor's  report  gives  with  reference  to  appropriations  and  ex- 
penditures.    It  cannot  be  said  that  either  gives  a  clear  summary 
of  the  actual  financial  status  of  the  government. 

All  state  expenditures,  with  two  exceptions,  are  quite  definitely 
specified  in  the  appropriation  acts.  The  exceptions  are  the 
"contingent  funds."  One,  the  governor  and  council's  "con- 
tingent fund,"  has  been  treated  already.  The  other,  the  state 
"contingent  fund,"  was  created  by  statute  in  1915.  Section  85, 
chapter  2,  revised  statutes  1916  reads: 

The  state  auditor  and  treasurer  of  state  shall  open  on  their 
books  an  account  to  be  known  as  the  state  contingent  fund, 
to  which  shall  be  transferred  and  credited  all  balances  of  un- 
expended appropriations  which  exist  on  the  first  day  of  Jan- 
uary of  each  year  and  which  are  not  continued  by  law  except 
such  appropriations  as  relate  to  the  issue  and  payment  of 
state  bonds,  temporary  loans  and  special  funds  in  the  state 
treasury  department.  There  shall  also  be  credited  to  said 
account  on  the  first  day  of  January  of  each  year  or  as  soon 
thereafter  as  the  amount  can  be  correctly  ascertained,  the 
arm  unit  by  which  the  actual  income  of  the  state  for  the  pre- 
ceding year  exceeds  the  current  expenses  of  said  year. 

30 


FINANCIAL    LEGISLATION     AND     CONTROL    BEFORE    1917 

Section  86 — The  fund  established  by  the  preceding  section 
and  accounted  for  in  the  account  aforesaid  may  be  increased 
from  time  to  time  by  direct  legislative  appropriations. 

Section  87 — Warrants  may  be  drawn  upon,  charged  to, 
and  paid  out  of  said  fund,  to  pay  outstanding  bills  and  ac- 
counts that  were  properly  chargeable  to  the  several  appro- 
priations previous  to  the  first  day  of  January  of  each  3rear; 
to  pay  outstanding  bills  necessarily  contracted  by  state  de- 
partments or  state  institutions  for  which  the  legislature 
failed  to  make  sufficient  provision,  and  to  pay  such  other 
expenses  as  may  be  necessarily  incurred  under  any  require- 
ment of  law  or  for  the  maintenance  of  government,  and  which 
the  governor  with  the  advice  of  the  council  shall  authorize, 
provided,  however,  that  no  payment  shall  be  made  from  this 
fund,  except  as  above  provided,  unless  some  emergency  shall 
arise  requiring  an  expenditure  of  money  not  provided  for  by 
the  legislature. 

Section  88 — Warrants  drawn  upon  this  fund  shall  be  sup- 
ported by  proper  vouchers,  itemized,  approved  and  audited 
in  conformity  to  law.  No  transfer  or  payments  other  than 
those  provided  by  the  three  preceding  sections  shall  be  made 
from  any  fund  thereby  created  except  by  special  authority 
of  the  legislature. 

The  creation  of  this  state  contingent  fund  has  made  unnecessary 
the  passage  of  deficiency  appropriation  bills  since  necessary  pay- 
ments during  the  legislative  session  can  be  made  from  it  on  war- 
rant of  the  governor  and  council.  This  arrangement  also  makes 
possible  the  transfer  of  appropriations  or  parts  of  appropriations 
as  section  88  (above)  is  no  great  hindrance.  By  special  action  on 
the  part  of  the  auditor  during  1915-16,  revenue  received  by  al- 
most all  departments  and  institutions  has  been  actually  paid  into 
the  treasury  as  the  law  contemplates.     Here  is  his  statement: 

Upon  assuming  the  duties  of  this  office,  I  found  that  several 
institutions  were  accustomed  to  expend  their  revenue  to  meet 
their  current  bills  without  any  legal  warrant.  Thereupon,  I 
notified  the  heads  of  the  several  departments  and  institu- 
tions that  it  was  incumbent  upon  them  to  deposit,  on  the 
first  day  of  each  month,  with  the  State  Treasurer  all  moneys 
received  by  them  during  that  period, — thus  enabling  the 
Auditor  to  audit  all  bills  and  the  payment  of  same  made  by 
the  State  Treasurer  through  the  proper  channels  as  the  law 
contemplates.1 


Auditor's  Report  1915-6,  Senate  Document  No.  436,  78th  Legislature. 


31 


CHAPTER   IV 

GOVERNOR  MILLIKEN'S  PROGRAM  AND  ITS 

ACCEPTANCE 


First  Steps 

The  1916  elections  in  Maine  went  overwhelmingly  Republi- 
can, making  Carl  E.  Milliken  of  Island  Falls,  Governor-Elect, 
and  giving  the  Republicans  28  out  of  31  senators  and  105  out  of 
151  representatives. 

During  the  political  campaign,  little  attention  was  paid  to  the 
operation  of  budget  procedure.  Governor-elect  Milliken  fa- 
vored some  real  reform  in  the  methods  of  financial  legislation 
but  he  did  not  emphasize  this  in  the  campaign  as  he  felt  that  the 
people  did  not  understand  enough  about  the  subject  to  be  inter- 
ested.1 They  were  far  more  concerned  about  the  enforcement  of 
the  prohibition  laws, — the  big  issue  in  the  campaign. 

Governor-elect  Milliken  was  graduated  from  Bates  in  1897, 
later  took  graduate  work  at  Harvard  and  had  had  almost  twenty 
years'  experience  in  the  lumber  business.  His  training  was  not 
confined  to  the  academic  and  business  world,  for  in  1904  he  en- 
tered officially  on  his  career  in  state  politics,  being  elected  to  the 
house,  to  which  he  was  returned  in  1906.  Aroostook  countv 
then  gave  him  three  successive  terms  in  the  senate,  of  which  he 
was  elected  president  in  1913,  at  the  age  of  35. 2 

The  Governor-elect  considered  it  his  duty  to  rule  as  well  as 
reign,  but  his  rule  was  not  to  be  of  the  "mailed  fist"  order.  It 
was  to  be  based  on  the  principle  of  co-operation  and  consultation 
with  the  legislative  leaders  and  this  principle  began  to  operate 
long  before  the  legislature  convened.  One  of  the  first  matters 
which  demanded  conferences  was  the  budget. 

He  gave  much  time  after  his  election  to  a  study  of  the  budget 
system,  but  the  press  did  not  pay  much  attention  to  his  activities 
in  this  direction  until  the  middle  of  December.  An  article  in 
the  Kennebec  Journal  for  December  14,  1916  discussed  the 
budget  system  at  some  length.     It  read  in  part  as  follows: 

Governor-elect  Milliken  is  now  in  attendance  at  the  ses- 
sion of  the  house  of  governors  in  Washington  where  he  is 

1  Conversation  with  Governor  Milliken,  Augusta,  April  6,  1917. 

2  Maine  Book. 

32 


GOVERNOR     MILLI  KEN'S    PROGRAM 


making  especial  inquiries  into  the  budget  system.  It  is  his 
intention  on  the  asfiemblying  of  the  legislature  to  present  to 
the  law-making  body  of  Maine  the  information  he  has  gath- 
ered, not  only  from  his  conference  with  the  governors  of  other 
states  but  also  from  other  sources  with  which  he  has  been 
closely  in  touch. 

These  ideas  will  be  given  to  the  legislature  for  discussion, 
and  in  return  governor-elect  Milliken  is  very  anxious  to  get 
the  opinions  of  the  senators  and  representatives  as  to  the 
working  of  the  system.  Since  he  was  elected  in  September, 
governor-elect  Milliken  has  been  in  conference  informally 
with  many  of  the  senators-elect  and  representatives-elect 
from  all  parts  of  Maine.  The  leading  topic  of  conversation 
at  these  sessions  has  been  the  budget  system.     .     .     .   . 

Governor-elect  Milliken  is  a  staunch  supporter  of  the 
budget  system  but  in  accordance  with  his  pre-election  prom- 
ises he  is  anxious  to  have  the  matter  thoroughly  discussed 
among  the  legislators.  There  are  many  of  them  naturally 
whom  he  has  not  yet  been  able  to  see,  but  he  is  hoping  that 
there  will  be  opportunity  either  before  the  sitting  of  the 
Legislature  or  in  the  early  days  of  the  session  when  the  mat- 
ter may  be  thoroughly  threshed  out. 

Publicity 

The  Kennebec  Journal,  the  only  daily  newspaper  published  in 
Augusta,  and  the  official  state  paper,1  printing  a  stenographic 
record  of  the  legislative  session,  and  giving  far  more  space  to 
State  House  news  than  any  other  paper  in  the  state,  featured 
Governor  Milliken's  budget  program  from  the  start.  Mr.  Gil- 
bert R.  Chadbourne,  the  editor,  writing  under  date  of  October 
19,  1917,  said: 

We  gave  almost  unlimited  space  to  the  financial  questions 
because  the  budget  system  had  been  urged  by  us  editorially 
for  a  number  of  years,  and  because  we  hoped  to  be  of  some 
assistance  to  the  governor  in  "  putting  it  over." 

Reference  will  constantly  be  made  to  its  columns  as  it  furnished 
very  comprehensive  information  on  the  budget  situation.  Its  is- 
sue of  December  15,  1916  displayed  this  two-column  head  on  the 
front  page: 


1  Public  Laws  of  1917,  chapter  No.  1. 


33 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


House  of  Governors  Gives  General  Approval 
to  the  Budget  System 


Maryland    Provisions    Discussed    At    Thursday's    Washington 

Meeting 


Executives    Are    Dinner    Guests    at    White    House — Governor- 
Elect   Milliken    and   Former   Governor   Haines   Attending 

An  article  by  the  state  house  reporter  in  the  same  issue  shows 
the  situation  at  that  time: 

Those  "nothing-to-do-until-tomorrow"  days  of  the  Maine 
legislature  are  going  to  be  relegated  to  the  background. 
This  long  sought  for  reform  will  be  brought  about  according 
to  the  opinion  of  progressive  legislators  by  the  inauguration 
of  the  budget  system.     .     .     . 

"The  plan  would  be  simplicity  itself,"  said  Governor- 
elect  Milliken,  in  discussing  the  proposition.  "Either  the 
committee  on  appropriations  or  a  special  committee  named 
for  the  purpose  would  have  for  its  especial  duty  a  thorough 
investigation  of  the  estimates  contained  in  the  budget.  A 
hospital  seeking  a  certain  sum  would  be  assigned  for  con- 
sideration on  a  particular  forenoon  or  afternoon  during  the 
days  when  there  is  really  nothing  under  the  present  system 
to  engage  the  attention  of  the  legislators." 

In  this  article  the  governor-elect  goes  on  to  propose  that  a 
whole  half -day  be  given  to  the  hearing  for  each  department  or 
institution,  and  that  after  resolves  are  introduced  a  second  hear- 
ing be  given  by  the  appropriations  committee. 

After  the  governors'  conference,  Governor-elect  Milliken 
continued  his  budget  studies,  conferring  with  President  Goodnow 
of  Johns  Hopkins,  an  authority  on  the  budget  and  especially  on 
the  Maryland  plan  and  with  Dr.  F.  A.  Cleveland  and  Dr.  C.  A. 
Beard  of  the  Bureau  of  Municipal  Research,  New  York.  Upon 
his  return  to  Augusta,  he  made  the  following  statement: 

I  believe  that  the  constitutional  amendment  as  passed  in 
Maryland  is  logical  but  the  same  result  can  be  accomplished 
by  co-operation  between  the  governor  and  the  legislature 
without  a  constitutional  amendment.  .  .  .  After  my 
trip  I  am  more  strongly  in  favor  of  the  budget  system  than 
ever.1 

Publicity  in  regard  to  the  budget  was  not  confined  to  reports 
of  the  opinions  and  activities  of  Governor-elect  Milliken,  for  on 

1  Kennebec  Journal,  December  20,  1916. 

34 


GOVERNOR     MILLI  KEN'S     PROGRAM 


January  2,  1917  the  Kennebec  Journal  began  the  publication  of  a 
series  of  four  articles  by  Dr.  Charles  A.  Beard,  then  Professor  of 
Politics  in  Columbia  University  on  "The  High  Cost  of  State 
Governments."  Announcing  this  series  in  an  editorial  on  Decem- 
ber 30,  1916,  the  Journal  said: 

Prof.  Beard  reviews,  succinctly,  the  accomplishments  of 
other  states  along  this  line  and  draws  sharp  contrasts  be- 
tween business  methods,  in  the  full  light  of  publicity,  and 
largely  prevailing  log-rolling  methods,  in  the  dusk  of  secret 
conference  and  trading. 

As  Governor  Milliken  is  to  lay  the  subject  before  the  legis- 
lature for  consideration,  every  senator  and  representative 
will  be  glad  to  read  everything  in  relation  thereto.  Many 
will  no  doubt  wish  to  preserve  this  series  for  reference  in  the 
discussion  to  come. 

Auditor's  Estimates 

While  the  Governor-elect  was  at  work  on  his  new  budget 
proposals,  the  state  auditor  as  has  been  noted  was  compiling 
estimates.  These  were  made  up  in  the  time-honored  fashion  and 
the  reasons  for  expenditures  were  omitted  from  the  printed 
report,  even  if  they  were  submitted  by  the  one  making  the  request. 
These  were  published  the  middle  of  December  and  totalled: 

1917  1918 

Departments,  boards  and  com- 
missions   $5,542,340.09  $5,346,978.42 

State  institutions 1,695,673.04  1,376,838.94 

Charitable,  benevolent  and  edu- 
cational institutions 300,663 .  72  208,595 .  00 

Individuals  and  corporations.  .  .  .  4,000.00  3,000.00 

Total:  Regular  and  special  ap- 
propriations asked  for $7,542,676.85  $6,935,412. 36l 

The  auditor  estimated,  that,  exclusive  of  the  state  tax,  re- 
ceipts to  the  government  in  1917  would  be  $3,167,504.83,  and  in 
1918,  $3,610,789.63.  To  meet  the  obligations  of  the  govern- 
ment if  all  the  appropriations  which  had  been  asked  for  were 
granted,  he  showed  that  the  tax  rate  of  the  state  would  have  to 
total  15  mills  for  the  two  years,  or  an  average  of  7 \  mills  a  year.2 
This  seemed  enormous  in  view  of  the  fact  that  the  rate  had  never 


1  See  Note  at  end  of  chapter,  page  82. 

2  State  Auditor's  Tabulation  of  Estimated  Expenditures  and  Income,  1917- 
1918,  Waterville,  1916,  p.  35. 

35 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


been  over  (3  mills  and  had  not  exceeded  5  mills  since  1911.     It  is 
not  surprising  therefore  that  the  state  house  reporter  for  the 
Kennebec  Journal  should  have  found  material  even  before  the 
close  of  December  for  a  half-column  article  headed  "The  Pruning 
Knife  Already  Going  into  the  Estimates."     In  this  article  espe- 
cial attention  was  paid  to  the  increased  demands  made  by  the 
state  and  state-aid  institutions,  into  which,  it  was  stated,  secre- 
tary James  F.  Bagley  of  the  state  board  of  charities  and  cor- 
rections was  making  an  exhaustive  inquiry.     Indeed  Mr.  Bagley 
seems  to  have  been  one  of  the  few  men  who  had  not  forgotten 
the  1915  budget  law,  for  on  December  29,  1916  he  transmitted 
to  the  governor  a  "  Special  Report  of  the  State  Board  of  Charities 
and  Corrections  in  relation  to  Charitable  and  Correctional  Ap- 
propriations for  1917-8,"  with  this  letter: 

Hon.  Carl  E.  Milliken, 

Governor-elect. 
Dear  Sir: — 

Pursuant  to  the  provisions  of  Section  4,  Chapter  196, 
Public  Laws  of  1913,  I  am  directed  by  the  State  Board  of 
Charities  and  Corrections  to  submit  herewith,  for  your  use 
in  preparing  the  budget  which  you  are  required  by  law  to 
submit  to  the  Legislature,  and  for  the  information  of  the 
Legislature  in  making  its  appropriations,  a  statement  con- 
taining the  views  of  the  Board  in  relation  to  the  appropria- 
tions required  by  charitable  and  correctional  institutions 
for  the  years  1917  and  1918,  and  the  principles  which  should 
govern  in  making  these  appropriations, 
Yours  very  respectfully, 

(signed)  James  F.  Bagley, 

Secretary. 

Governor-elect  Milliken  also  looked  over  the  auditor's  reckon- 
ing. He,  too,  was  astounded  at  the  total  of  almost  fifteen  mil- 
lions, but  was  perhaps  inclined  to  think  that  such  a  situation 
would  give  him  more  support  for  reform  measures.  At  any  rate 
he  recognized  the  necessity  for  an  increase  in  state  expenditures 
and  believed  that  fact  itself  demanded  the  inauguration  of  a  new 
system  of  financial  control,  the  budget  plan.  "  It  will  be  neces- 
sary," he  said,  "to  find  out  just  what  are  the  actual  needs  of  the 
various  departments  and  institutions  and  to  make  the  appro- 
priations accordingly.  Were  the  budget  system  in  effect  the 
legislature  would  be  informed  even  to  cents  as  to  the  amount 
of  money  actually  needed.  They  would  then  be  able  to  act  much 
more  intelligently  than   under  the    present  arrangement,   and 

36 


GOVERNOR     MILLIKEN'S     PROGRAM 


actual  needs  would  be  met  much  more  fairly  than  can  possibly 
be  done  now."  * 

The  Governor  Before  the  Legislature 

Thus  was  the  stage  set  when  the  seventy-eighth  Maine  legisla- 
ture began  its  process  of  ''getting  together."  The  constitution 
states  that  the  legislature  shall  convene  on  the  first  Wednesday 
of  January,  but  the  lights  were  burning  throughout  the  state 
house  several  hours  before  12.01  a.  m.  on  the  stated  day  and 
many  of  the  legislators  might  have  been  found  wending  their 
way  to  the  seat  of  government  in  the  early  hours  of  the  evening 
of  Tuesday.  They  were  not,  however,  visiting  the  state  house 
as  state  senators  and  state  representatives  but  as  members  of 
two  great  political  parties  to  which  they  owed  allegiance.  Six 
caucuses  to  nominate  officials  were  held  that  evening:  house 
Republicans,  house  Democrats,  senate  Republicans,  senate 
Democrats,  house  and  senate  Republicans,  house  and  senate 
Democrats.  The  joint  caucuses  nominated  the  officers  to  be 
elected  by  joint  ballot  of  the  house  and  senate  and  the  separate 
caucuses  drew  up  the  slates  of  officials  to  be  chosen  to  serve  their 
own  respective  bodies.  It  was  2.23  a.  m.  Wednesday,  January 
3,  before  the  final  ballot  in  the  Republican  joint  caucus  was  an- 
nounced and  the  servants  of  the  G.  O.  P.  were  permitted  to  go 
home  for  a  few  hours'  sleep  before  the  call  for  the  official  legisla- 
tive assembly  at  10  a.  m.  should  arouse  them. 

The  personnel  of  the  legislature  demands  a  word,  for  social 
distinctions  are  bound  to  show  themselves  in  governmental 
action,  even  on  appropriation  measures.  The  senate  of  31 
members  was  composed  of  eight  lawyers,  four  lumbermen,  three 
general  insurance  agents,  two  canners,  two  merchants,  two 
bankers,  two  physicians  and  druggists,  a  farmer  and  teacher,  a 
coal  dealer,  a  farmer,  a  merchant  and  banker,  a  civil  engineer, 
and  a  lumberman  and  farmer.  Fourteen  of  these  men  had  had  a 
collegiate  education  and  twenty-five  had  had  former  legislative 
experience.  The  house  of  151  members  included  35  farmers,  18 
lawyers,  17  merchants,  five  lumbermen,  five  insurance  agents, 
four  physicians,  four  traveling  salesmen,  three  school  teachers, 
three  farmers  and  merchants,  three  canners,  three  manufacturers, 
three  dealers  in  live  stock,  and  three  retired  businessmen.  Most  of 
the  others  were  engaged  in  some  kind  of  business.  Twenty-nine 
of  them  had  had  a  college  education  and  46  had  had  legislative 

1  Kennebec  Journal,  December  28,  1916. 

37 


THE     GOVERNOR'S     BUDGET     IN     MAINE,     191? 


experience, — "the  largest  number  of  experienced  members  for 
more  than  ten  years,"  to  quote  the  Kennebec  Journal.1  The 
governor  and  41  of  the  182  legislators  were  under  forty  years  of 
age. 

Thus  constituted  the  legislature  as  an  official  organ  of  the  state 
government,  met  on  Wednesday  morning,  January  3,  and  after 
electing  officers  and  passing  certain  resolves  of  a  routine  nature 
adjourned  until  Thursday.  One  time-honored  resolve,  passed 
on  Wednesday,  provided  that  each  legislator  should  be  pro- 
vided with  three  newspapers  daily  during  the  session.  Repre- 
sentative Robert  Lee  Bussabarger,  Democrat  from  Lubec  op- 
posed this  resolution  on  the  ground  that  it  was  an  extravagant 
expenditure  of  $500  to  $600.  A  significant  part  of  his  speech 
reads  as  follows: 

Before  leaving  for  this  capitol,  a  good  Republican  friend 
called  me  over  the  phone  and  said,  "Be  sure  and  send  me  the 
Kennebec  Journal;  it  won't  cost  you  anything."  Also,  a 
deserving  Democrat,  who  had  worked  for  the  support  of  the 
member  from  Lubec,  said,  "Be  sure  and  send  me  a  good 
Democratic  paper";  that  would  only  leave  one  paper  for  the 
speaker.  ...  I  am  unalterably  opposed  to  special  class 
legislation  of  any  kind  whatsoever — or  any  subsidy — to  a 
special  class  of  three  per  cent  out  of  one  thousand,  when  997 
per  cent  are  the  people  who  have  to  pay  for  it. 

Mr.  Rounds  of  Portland  speaking  later  on  the  same  resolve 
said,  "I  for  one  say  they  should  have  three  papers  if  they  want 
them  and  I  am  willing  to  so  vote,"  and  he  seemed  to  express  the 
opinion  of  the  House,  for  the  resolve  went  through  on  a  viva 
voce  vote. 

On  Thursday  morning,  January  4,  it  might  be  said  that  the 
real  work  of  the  session  began.  Senate  and  house  met  in  joint 
convention  and  before  them  the  governor-elect  took  his  oath  of 
office.  He  then  communicated  to  the  assembly  his  view  of  the 
task  which  lay  before  them,  giving  specific  attention  to  the 
budget  before  treating  of  any  other  matters.  The  first  part  of 
his  address,  to  the  conclusion  of  his  remarks  on  the  budget  are 
quoted  here  in  full,  with  italics  by  the  writer  of  this  report: 

Gentlemen  of  the  Seventy-eighth  Legislature: 

(  hosen  by  the  people  of  Maine  for  a  common  task,  you  and 
I  are  Bet  apart  together  by  solemn  oath  before  Almighty  God. 
Not  as  individual  farmers,  manufacturers,  professional  men, 


1  Kennebec  Journal,  Supplement,  January  3,  1917. 

38 


GOVERNOR     Ml LLI KEN'S     PROGRAM 


but  as  the  directors  of  a  great  corporation,  we  are  to  plan 
together  for  the  welfare  of  the  whole  people.  We  shall  best 
show  our  gratitude  to  those  who  sent  us  here  and  best  de- 
serve their  confidence  by  full  recognition  of  the  obligation 
imposed  by  this  relationship.  We  are  public  servants  and 
the  public  good  must  be  our  only  interest. 

Our  government  is  divided  into  three  branches,  legis- 
lative, judicial  and  executive,  yet  this  partition  of  powers  is 
neither  absolute  nor  complete.  My  responsibility  is  pri- 
marily executive,  but  it  is  my  constitutional  duty  to  suggest 
appropriate  legislation  and  to  register  approval  or  disap- 
proval of  each  act  or  resolve  which  you  will  pass.  There- 
fore, with  due  deference  to  your  judgment  and  with  no 
desire  to  usurp  in  the  slightest  degree  any  proper  function 
of  yours,  I  still  frankly  accept  my  share  of  the  responsibility 
for  the  final  results  of  your  labors  and  invite  your  consid- 
eration of  some  important  general  features  of  the  task  before 
you. 

My  first  suggestion  is  a  word  of  caution  against  too  much 
legislation.  The  enactment  of  too  many  laws  tends  to  con- 
fuse the  people  and  decrease  the  general  respect  for  law. 
You  can  earn  fame  and  the  lasting  gratitude  of  your  con- 
stituents by  making  only  necessary  and  well-considered 
changes  in  our  statutes,  and  by  rejecting  everything  petty 
or  trivial.  You  are  especially  urged  to  refuse  private  and 
special  legislation  for  purposes  that  can  be  accomplished  un- 
der the  general  law  and  to  decline  further  to  cumber  the 
statutes  with  special  regulations  of  fishing  in  particular 
streams  or  ponds. 

The  Budget  System 

It  is  your  duty  to  make  adequate  provision  by  appro- 
priation from  the  public  treasury  for  all  proper  public  needs 
and  to  provide  the  necessary  funds  by  just  and  equitable 
taxation.  State  departments  and  institutions  are  entitled 
to  your  first  consideration.  Next  you  should  provide  rea- 
sonably for  those  charitable  and  benevolent  institutions 
whose  work  partakes  of  the  character  of  public  service. 

The  high  cost  of  all  materials  and  supplies  creates  a  special 
emergency  in  connection  with  this  problem.  An  examina- 
tion of  the  requests  for  appropriations  filed  with  the  State 
Auditor  by  State  departments  and  charitable  and  benevolent 
institutions  shows  that  the  total  asked  for  during  1917  and 
1918  exceeds  by  more  than  $4,000,000  the  total  appropria- 
tions for  all  purposes  for  the  years  1915  and  1 9 1  (>. 

I  urge  you  to  meet  this  extraordinary  situation  by  careful 
and  painstaking  scrutiny  of  all  sources  of  revenue  and  all  pro- 
posed appropriations  before  any  expenditures  are  finally 
authorized.  Ordinary  business  sense  plainly  dictates  such  a 
course.     Yet  in  the  experience  of  our  Maine  legislatures  such 

39 


THE     GOVERNOR'S     BUDGET     IN     MAINE,     1917 


knowledge  in  advance  of  final  decision  on  resolves  appro- 
priating money  is  not  only  never  obtained  but  is  impossible 
under  our  customary  procedure.  Private  and  special  resolves 
are  introduced  on  the  same  footing  with  those  providing  for 
necessary  public  expenditures.  Each  is  heard  by  the  ap- 
propriate legislative  committee  and  each  reaches  the  Gov- 
ernor for  approval  without  review  even  by  one  central  com- 
mittee of  the  legislature  and  in  the  haphazard  order  of  final 
passage. 

The  average  member  of  the  legislature  desires  to  con- 
sider all  proposed  appropriations  carefully.  He  finds,  how- 
ever, that  during  the  first  weeks  of  the  session  very  few  such 
matters  are  heard  before  committees  and  little  other  business 
is  actually  done,  while  the  rush  and  hurry  later  in  the  session 
prevent  anything  like  adequate  comprehension  of  the  entire 
financial  program,  either  by  the  members  of  the  Legislature 
or  by  the  general  public.  The  legislators  themselves  fail  to 
acquire  a  due  sense  of  the  relative  importance  of  each  pro- 
posed appropriation  in  the  general  financial  program,  and 
the  public  cannot  definitely  fix  the  responsibility  for  any 
particular  expenditure. 

It  is  only  because  of  the  average  high  character  of  the 
membership  of  our  legislatures  that  we  in  Maine  have  escaped 
the  full  consequences  of  extravagance  and  waste  which  this 
faulty  system  has  produced  elsewhere.  A  similar  method 
prevails  in  most  states  and  in  the  national  government. 
America  is,  however,  the  only  great  democracy  in  the  world 
that  permits  the  appropriation  of  public  funds  by  such  in- 
efficient and  irresponsible  methods. 

The  remedy  is  found  in  the  executive  budget  used  in  Great 
Britain  for  more  than  two  hundred  years.  It  is  now  favored 
in  some  states  in  this  country,  has  actually  been  adopted  in 
one  state  and  has  been  advocated  for  the  national  govern- 
ment by  at  least  one  recent  president  during  his  term  of 
office. 

The  budget  plan  is  the  presentation  of  a  complete  financial 
program  by  the  responsible  executive  before  any  expenditures 
have  been  authorized  by  the  legislature.  Such  presentation  must 
include  a  summary  of  available  revenue  and  a  detailed  sched- 
ule of  expenditures.  Members  are  thus  enabled  to  judge  for 
themselves  the  comparative  importance  of  all  proposed  ap- 
propriations. By  this  system,  a  member  favoring  an  increase 
in  any  particular  appropriation  beyond  the  budget  estimate 
must  accept  a  definite  responsibility  for  advocating  this  added 
expenditure.  It  is  also  evident  to  every  member  and  to  the 
general  public  that  an  increase  in  any  particular  expenditure 
beyond  the  amount  suggested  in  the  budget  must  be  offset 
by  a  corresponding  decrease  in  some  other  item. 

A  prudent  tailor  before  grasping  his  shears  marks  out  his 
patterns  carefully  upon  the  available  cloth.     So  the  execu- 

40 


GOVERNOR     MILLIKEN'S     PROGRAM 


tive  presenting  a  budget  to  the  legislative  assembly  points 
out  clearly  how  much  revenue  may  be  expected  and  suggests 
a  corresponding  schedule  of  expenditures.  Just  as  the 
tailor  may  shift  any  pattern  before  he  uses  the  shears,  so  the 
legislature  may  change  the  size  of  any  particular  appro- 
priation but  in  that  case  must  be  responsible  to  the  people 
for  such  deviation  from  the  budget  proposal. 

Mindful  of  the  special  financial  emergency  which  now 
confronts  us,  and  believing  earnestly  that  a  change  from  our 
customary  method  of  making  appropriations  is  advisable, 
I  ask  you  to  join  with  me  in  an  effort  to  establish  a  real  budget 
system.  No  new  legislation  is  necessary  at  present.  I  pro- 
pose a  series  of  informal  public  hearings  conducted  jointly  by 
the  governor  and  council  and  the  appropriate  legislative  com- 
mittee. The  representatives  of  each  department  or  institution 
asking  an  appropriation  can  be  invited  in  turn  to  present 
their  requirements  in  such  detail  as  may  seem  advisable. 
After  about  three  weeks  of  such  discussion  and  conference, 
I  hope  to  present  a  detailed  budget  for  your  consideration. 
You  will  then  go  about  the  work  of  making  appropriations  and 
will  give  to  the  budget  suggestions  such  weight  as  in  each  instance 
you  may  think  proper.  The  time  spent  in  preliminary  hear- 
ings will  have  caused  no  delay,  for,  under  our  customary 
method  of  formal  committee  hearings,  practically  no  business 
is  done  during  the  first  four  weeks  of  the  average  session. 
Each  of  you  will  have  had  the  opportunity  to  hear  every  detail 
of  the  financial  program  discussed,  a  privilege  no  one  mem- 
ber of  any  previous  legislature  ever  enjoyed.  By  constant 
attendance  during  January,  you  will  have  acquired  early  in 
the  session  that  mutual  acquaintance  which  is  a  necessary 
basis  for  useful  public  service.  Through  these  preliminary 
hearings,  much  of  the  expense  of  legislative  advertising  will 
be  eliminated,  for  in  each  case  where  the  budget  suggestion 
is  accepted  by  the  institution  or  department,  no  formal  hear- 
ing later  in  the  session  will  be  necessary. 

This  proposal  is  the  fruit  of  a  diligent  study  of  our  financial 
problems  in  the  light  of  past  legislative  experience  and  it  is 
made  for  the  sole  purpose  of  improving  our  method  of  man- 
aging the  public  business.  By  common  consent  it  is  the  gov- 
ernor's duty  to  restrain  the  total  of  appropriations  within  the 
limits  prescribed  by  reasonable  expectation  of  revenue.  The 
budget  plan  is  not  an  attempt  to  enlarge  that  responsibility; 
it  is  only  a  suggestion  that  such  restraint  be  preceded  by  a 
detailed  financial  program  presented  after  careful  examina- 
tion of  all  pertinent  facts  and  after  full  discussion  of  each 
of  you  with  every  interested  party. 

Governor  Milliken  made  three  definite  propositions  with  rela- 
tion to  financial  legislation, — three  propositions  which,  it  is 
probably  safe  to  say,  had  never  been  presented  to  a  Maine  legis- 

41 


THE     GOVERNORS     BUDGET    IN     MAINE,     1917 


lature  before.  First,  he  proposed  that  the  executive  be  allowed 
to  set  the  limits  for  the  total  of  appropriation  measures,  and  that 
the  legislature  confine  its  activities  to  the  size  of  particular  ap- 
propriations. Second,  he  suggested  a  series  of  joint  hearings  on 
appropriations  before  the  governor,  council  and  appropriate  legis- 
lative committees.  Third,  he  requested  that  the  legislature  join 
with  him  in  adopting  certain  features  of  the  British  budget  sys- 
tem, not  by  enactment  of  a  statute  but  by  unwritten  voluntary 
action.  Such  action  would  involve  the  hearty  co-operation  of 
the  legislature  in  the  budget  procedure  of  the  governor  which 
would  mean  the  non-enactment  of  appropriation  acts  and  re- 
solves until  the  governor  had  submitted  his  budget  and  serious 
consideration  had  been  given  to  it  as  thus  submitted.  His  prop- 
ositions then  contemplated  joint  action  of  the  executive  with 
the  legislature  in  the  creation  of  the  financial  plan. 

Legislative  Organization 

The  Legislative  Record  for  ^the  session  of  the  house  for  Jan- 
uary 4  (page  33)  reads: 

From  the  senate:  Ordered,  that  a  joint  select  committee 
of  three  on  the  part  of  the  senate,  with  such  as  the  house  may 
join,  be  appointed  to  consider  the  governor's  message  and 
report  the  reference  of  its  several  subjects  to  appropriate 
committees. 

The  order  received  a  passage  in  concurrence. 

Officially  the  message  was  thus  disposed  of  but  unofficially  it 
went  to  the  steering  committees  of  the  Republican  and  Demo- 
cratic parties.  Leon  F.  Higgins  of  Brewer,  chairman  of  the 
Republican  senate  caucus  1917,  states  that  the  steering  com- 
mittee usually  consists  of  the  chairman  of  the  joint  caucus  as 
chairman  and  four  other  members  of  the  caucus.  In  a  letter 
dated  October  27,  1917,  he  goes  on  to  say: 

The  duty  of  this  committee  is  to  take  the  inaugural  of  the 
governor  and  go  over  it  in  detail  and  make  such  recommenda- 
tions to  the  caucus  as  they  may  think  advisable  for  the 
interests  of  the  party.  As  you  probably  know,  they  do  not 
always  follow  the  advice  of  the  committee,  but  I  am  of  the 
opinion  that  nineteen  out  of  twenty  times  they  will  do  so; 
especially  was  this  true  at  the  last  session  of  the  legislature. 

To  return  to  the  realm  of  official  action,  a  word  about  the  ap- 
pointment and  personnel  of  the  joint  standing  committees  seems 
in  order.  From  the  financial  standpoint,  the  committees  on  ap- 
propriations and  financial  affairs,  on  education,  and  on  ways  and 

42 


GOVERNOR     MILLIKEN'S     PROGRAM 


bridges  are  most  important,  as  they  control  the  bulk  of  the 
annual  appropriations  made  by  the  state  government.  Other 
committees  of  lesser  importance  from  this  standpoint  are  as 
follows:  agriculture,  Indian  affairs,  inland  fisheries  and  game, 
insane  hospitals,  military  affairs,  pensions,  public  buildings  and 
grounds,  public  health,  salaries  and  fees,  school  for  feeble  minded, 
sea  and  shore  fisheries,  state  prison,  state  school  for  boys,  state 
school  for  girls  and  women's  reformatory.  Each  one  of  the  first 
three  committees  named  above  passes  on  annual  appropriations 
in  the  neighborhood  of  $200,000  or  over  and  those  in  the  second 
group  usually  recommend  resolves  totaling  at  least  $25,000  for 
each  year. 

To  be  chairman  of  the  committee  on  appropriations  and  finan- 
cial affairs  (probably  the  most  important  legislative  post  with 
reference  to  the  budget)  President  Bailey  of  the  senate  appointed 
Senator  Leon  F.  Higgins  of  Brewer,  the  majority  leader  in  that 
house.  Mr.  Higgins,  an  insurance  agent  with  offices  in  Bangor, 
has  been  three  times  mayor  of  Brewer  and  was  a  member  of 
the  house  of  representatives  in  1913  and  1915  and  during  the 
1915  session  was  a  member  of  the  appropriations  committee. 
The  Bangor  Daily  News  (Rep.)  in  announcing  his  appointment 
in  its  issue  of  January  11,  1917,  headed  the  item,  "Higgins  Highly 
Honored." 

According  to  the  biographic  sketches  published  in  the  Kennebec 
Journal  on  January  3,  1917,  none  of  the  members  of  this  com- 
mittee had  had  a  college  education  but  exactly  half  of  them  had 
been  members  of  the  legislature  in  former  years,  and  one  in  addi- 
tion to  Senator  Higgins  was  a  member  of  the  appropriations  com- 
mittee in  1915, — Representative  Nicholas  of  Eastport.  All  of 
the  senate  members  were  Republican  and  all  happened  to  be 
insurance  agents.  At  least  five  of  the  house  members  were 
business  men.  Two  of  them  had  been  town  clerks  for  ten  years, 
one  came  of  an  "old  ship-building  and  ship-owning  family,"  an- 
other was  described  as  "one  of  the  largest  tax-payers  in  Bangor." 
The  two  last  referred  to  were  Democrats.  It  is  evident  that  this 
committee  represented  the  business  interests  of  the  state. 

Four  of  the  ten  members  of  the  committee  on  education  had 
had  a  college  or  professional  school  education  and  one  other  had 
served  his  local  constituency  as  superintendent  of  schools.  Six 
had  had  previous  legislative  experience  and  one  had  served  on 
the  education  committee  in  1915.  An  analysis  of  their  occupa- 
tions shows  that  six  were  engaged  in  business,  two  in  farming 

43 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


and  two  in  professional  work, — one  a  doctor  and  the  other  a 
lawyer.  The  Republicans  had  nine  representatives  on  this 
committee  and  the  tenth  member  was  an  "  Independent  Demo- 
crat." The  membership  contained  representatives  of  the  fol- 
lowing religious  denominations:  Universalist  (2),  Unitarian,  Free 
Baptist,  Christian  Scientist,  Congregationalist,  Methodist,  but 
no  Roman  Catholic. 

Seven  men  in  business,  two  in  professional  careers,  and  one  in 
"agriculture"  composed  the  committee  on  ways  and  bridges. 
Five  of  these  had  had  previous  experience  in  the  Maine  legis- 
lature and  five  had  had  a  college  or  professional  school  education. 
It  is  interesting  to  note  that  only  one  represented  a  city  of  any 
size. 

The  Governor  as  the  Legislative  Leader 

Early  Relations  with  Committee  Chairmen 

An  outline  of  the  situation  up  to  the  beginning  of  the  actual 
work  of  the  legislative  session  has  been  given:  the  presentation 
by  the  governor  of  his  program  requesting  the  co-operation  of  the 
legislature  and  the  organization  of  that  body  itself  into  com- 
mittees for  action. 

It  was  with  the  chairmen  of  the  various  committees  that  the 
governor  first  sought  co-operation.  He  did  not  begin  by  at- 
tempting to  educate  them  in  a  formal  way  with  reference  to  the 
details  of  budget  procedure  which  he  had  in  mind,  but  brought 
to  their  attention  a  statute  of  1915  which  gave  him  large  power 
over  the  internal  administration  of  the  legislative  committees. 
These  committees  had  been  accustomed  to  almost  unlimited 
freedom  in  employing  clerks,  stenographers,  etc.,  and  in  running 
up  rather  large  items  for  "junket"  trips.  Chapter  25  of  the 
private  and  special  laws  of  1915,  he  reminded  them,  read  as 
follows: 

Sec.  1 — The  governor  and  council  shall,  by  a  general  order, 
to  be  revised  at  the  beginning  of  each  session  of  the  legisla- 
ture, determine  which  of  the  legislative  committees  may 
have  the  service  of  subordinates  and  in  what  capacities, 
and  shall  fix  the  compensation  to  be  paid  to  such  subordi- 
nates. They  shall  also  from  time  to  time,  during  the  ses- 
sion of  the  legislature,  when  found  necessary,  authorize 
other  necessary  assistance  to  the  committees. 

Sec.  2 — No  legislative  committee,  or  officials  chosen  by 
such  committee  shall  employ  clerks,  stenographers,  or  other 
clerical  help,  at  the  expense  of  the  state,  until  so  authorized 
by  the  governor  and  council,  and  the  subordinates  employed 

44 


GOVERNOR     MILLIKEN'S     PROGRAM 


by  such  authority  shall  receive  no  other  compensation  from 
the  state,  than  that  fixed  by  the  governor  and  council. 

It  was  not,  however,  for  the  purpose  of  holding  this  statute 
over  them  as  a  threat  that  the  governor  called  the  committee 
chairmen  together  on  January  10.  Quite  the  opposite,  for  on 
taking  the  chair  at  the  request  of  President  Bailey  of  the  senate, 
he  said: 

I  earnestly  hope  this  is  the  beginning  of  actual  co-operation 
between  the  legislative  and  executive  branches.  Our 
machinery  makes  such  an  intimacy  rather  difficult — far 
more  so  than  is  the  case  in  many  other  states.  But  I  believe 
there  should  be  better  "team-work"  than  has  existed  in 
Maine  heretofore.  It  is  not,  however,  in  my  opinion,  the 
province  of  the  governor  and  council  to  dictate  to  the  com- 
mittees the  amount  of  clerk  hire  necessary.  We  will  be 
glad  to  offer  suggestions  or  advice;  but  the  actual  responsi- 
bility, gentlemen  of  the  committees,  rests  with  you. 

Hon.  T.  F.  Callahan  of  Lewiston  has  been  appointed  by 
the  council  to  have  charge  of  the  mechanical  details  of  the 
budget,  and  I  suggest  that  all  committee  chairmen  confer 
with  him. 

The  meeting  was  then  thrown  open  for  discussion  and  amid 
laughter  President  Bailey  exclaimed,  "It  isn't  often  that  we  can 
get  the  Governor  right  up  in  front  of  us,  where  we  can  talk  to 
him."1 

As  Governor  Milliken  had  hoped,  harmony  reigned  and  the 
next  steps  in  budget  making  could  be  carried  out. 

Unanimity  of  opinion  with  reference  to  the  budget,  however, 
did  not  exist.  Perhaps  this  was  largely  due  to  ignorance, — at 
least  this  was  the  opinion  of  Gilbert  Chadbourne,  editor  of  the 
Kennebec  Journal,  who  said  that  many  of  the  legislators  came  to 
Augusta  prejudiced  against  the  budget  because  they  understood 
it  would  mean  a  loss  of  local  appropriations  and  that  therefore 
they  would  be  out  of  favor  with  their  constituents. 

The  governor  believed  in  education  by  experience  rather  than 
by  lecture  and  text-book, — in  fact  no  one  seemed  to  pay  much  at- 
tention to  the  latter  process,  to  judge  by  the  sparse  collection  of 
literature  on  the  budget  to  be  found  in  the  legislative  reference 
department  of  the  Maine  state  library.  The  complete  collection 
consisted  of  the  following: 

"Public  Budgets"  in  the  Annals  of  the  American  Academy  of 
Political  Science,  November,  1915;  Municipal  Research  Nos. 


1  Kennebec  Journal,  January  11,  1917. 

45 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


58,  70,  73;  Report  to  Governor-Elect  Harrington,  Comptroller 
of  Maryland,  by  certified  public  accountants  with  reference  to 
the  Proposed  Budget,  Dec.  15,  1915;  Proposed  New  York  Con- 
stitution, 1915;  Budget  Procedure — Mass.  House  Document  No. 
2288;  "Saving  the  State's  Money"  by  H.  L.  Stimson,  with 
reference  to  the  proposed  New  York  Constitution,  1915;  Mary- 
land Governor's  Address  to  the  Governor's  Conference,  1916; 
Guide  to  Ohio  Departments  for  Budget  Making,  1917;  " Consti- 
tutional Provision  for  a  Budget"  by  Dr.  F.  A.  Cleveland,  Vol.  V. 
No.  1,  Proceedings  of  the  Academy  of  Political  Science,  1914. 

Although  the  Governor  sought  legislative  co-operation  and 
was  determined  to  put  the  budget  through  as  a  co-operative  af- 
fair, he  was  obliged  to  act  to  a  certain  extent  in  a  purely  executive 
capacity  in  order  to  form  the  financial  plan. 

He  was  determined  to  put  the  program  through  on  its  merits, 
not  by  in  any  sense  "  buying  up"  the  legislature.  He  took  no 
part  in  the  contest  for  president  of  the  senate  or  speaker  of  the 
house,  and  did  not  try  to  interfere  with  the  appointment  of  com- 
mittees1 although  it  is  claimed  in  certain  quarters  that  his  failure 
to  make  certain  appointments  to  high  administrative  posts  in 
the  early  part  of  the  session  naturally  affected  the  attitude  of 
legislative  factions  toward  him.2 

To  create  a  budget  which  would  pass  on  its  merits,  the  gov- 
ernor needed  some  staff  assistance,  although  "he  showed  a  grasp 
of  detail  regarding  the  affairs  in  all  departments  of  the  state  that 
was  a  surprise  even  to  those  who  thought  they  knew  him  most 
intimately."3  For  assistance  he  relied  on  the  budget  director, 
Mr.  T.  F.  Callahan  and  Mr.  J.  F.  Bagley,  secretary  of  the  state 
board  of  charities  and  corrections.  Mr.  Callahan  was  selected 
for  this  work  because  he  had  been  state  auditor  during  the  1913-4 
term  and  was  therefore  familiar  with  the  financial  organization 
and  operation  of  the  state.  He  was  also  recognized  as  an  expert 
in  handling  figures.  He  did  not  accept  this  position  until  the 
first  of  January,  1917  and  was  appointed  only  for  the  legislative 
session.  Mr.  Bagley 's  connection  with  the  budget  was  largely 
an  unofficial  one.  His  more  or  less  intimate  contact  with  the 
large  number  of  institutions  to  which  the  state  made  annual 
grants  of  considerable  sums  had  aroused  in  him  a  keen  interest 
in  financial  control.     He  had  studied  budget  methods  before  the 

1  Statement  of  Mr.  J.  F.  Bagley,  Secretary,  State  Board  of  Charities  and 
Corrections. 

2  Statement  of  Mr.  John  E.  Bunker,  ex-Secretary  of  State  (Democrat). 

3  Maine  Book  biographical  sketch  of  Governor  Milliken,  1917. 

46 


GOVERNOR     MILLI  KEN'S     PROGRAM 


governor  came  into  office  and  the  latter  was  glad  of  his  co-opera- 
tion and  assistance.  The  preparation  of  his  budget  recommenda- 
tions for  the  governor  has  already  been  noted. 

On  Thursday  afternoon,  January  11,  Governor  Milliken  called 
another  conference, — of  the  committee  on  appropriations  and 
financial  affairs,  with  the  president  of  the  senate,  the  speaker 
of  the  house  and  representatives  of  several  other  committees. 
In  the  course  of  the  conference  the  various  points  about  the  budget 
were  thoroughly  discussed  and  the  conference  proceeded  a  long 
way  in  what  Governor  Milliken  characterized  as  the  working  out 
of  something  entirely  new  in  which  the  executive  and  legislative 
branches  must  feel  their  way.  He  made  it  clear  that  one  of  the 
purposes  of  the  budget  system  was  to  give  every  member  of  the 
legislature  as  well  as  the  particular  committees  an  opportunity 
to  hear  the  facts  about  the  various  institutions. 

The  governor  emphasized  particularly  the  point  that  re- 
solves should  not  be  delayed  in  their  introduction  because 
of  the  budget  system  but  rather  that  it  was  desired  to  have 
them  all  introduced  as  soon  as  possible,  in  order  that  con- 
sideration of  them  might  enter  into  the  budget,  although 
it  was  asked  that  final  action  be  delayed  until  the  budget 
was  made  out. 

A  committee  consisting  of  Senator  Higgins,  chairman  of  the 
appropriations  committee,  Budget  Director  Callahan  and  Coun- 
cillor Norton  had  made  out  a  program  for  budget  hearings.  This 
was  announced  by  Governor  Milliken  at  the  Thursday  afternoon 
conference.  The  program  set  Friday  morning,  January  12  at 
9.30  a.  m.,  as  the  hour  for  the  first  hearing.1 

Joint  Budget  Hearings 

As  has  already  been  intimated,  the  so-called  budget  or  joint 
hearings  were  held  before  the  governor,  council,  committee  on 
appropriations  and  financial  affairs  and  any  other  committee 
which  was  directly  concerned  with  the  particular  appropriation 
under  consideration.  Government  departments  were  scheduled 
to  appear  first,  then  state  institutions  and  lastly,  state-aided 
institutions. 

Most  of  the  hearings  were  held  in  the  council  chamber, — and 
just  here  a  further  word  about  the  council  may  be  in  order. 
The  1917  council,  elected  by  a  Republican  house  and  senate, 
consisted  of  seven  Republicans,  five  of  whom  had  served  at 


1  Kennebec  Journal,  January  12,  1917. 

47 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


least  one  term  in  the  house.  All  of  them  were  over  forty-five 
years  of  age, — i.e.  at  least  seven  years  older  than  the  governor 
whom  they  were  chosen  to  advise.  Four  were  business  men, 
two  were  lawyers,  and  one  was  a  newspaper  editor. 

The  budget  hearings  were  managed  on  a  strictly  co-operative 
basis,  Governor  Milliken  and  Senator  Higgins  (as  the  leading  finan- 
cial representatives  of  the  executive  and  legislative  departments) 
presided  over  most  of  them  jointly.  The  new  scheme  seemed  to 
meet  with  general  approval,  as  the  Portland  Daily  Eastern  Argus 
noted  editorially  on  January  12,  stating  that  the  governor's 
"budget  recommendation  is  at  once  being  favorably  acted 
upon." 

Heads  of  departments  and  institutions  were  notified  in  advance 
of  the  hearings  and  they  were  requested  to  send  representatives 
who  were  to  be  allowed  a  limited  time  to  speak.  Hearings  pro- 
ceeded more  rapidly  than  in  the  past  and  the  cost  of  advertising 
such  sessions  was  eliminated  in  most  cases.  Five  officials  were 
heard  during  the  first  morning,  Friday,  January  13.  The  hear- 
ings were  more  or  less  of  a  judicial  nature,  as  the  head  of  the  de- 
partment or  institution  was  expected  to  show  cause  why  he  should 
be  granted  the  appropriation  for  which  he  had  made  request 
through  the  auditor's  office.  The  governor,  council  and  mem- 
bers of  the  legislative  committees  did  whatever  cross-examining 
seemed  necessary  to  produce  all  facts  essential  to  a  proper  decision 
with  regard  to  the  appropriation  to  be  granted.  The  governor 
sent  in  his  messenger,  George  W.  Leadbetter,  as  sponsor  for  the 
"executive  department"  requests,  as  he  was  undoubtedly  better 
acquainted  with  the  details  of  the  state's  business  than  any  other 
man.1  No  stenographic  record  of  the  hearings  was  kept  and 
there  is  absolutely  no  official  evidence  as  to  what  took  place  but 
the  public  were  admitted  freely  and  the  Kennebec  Journal  gave 
good  concise  reports  each  day,  frequently  using  two-column 
heads  on  the  front  page. 

After  a  hearing  both  executive  and  legislative  officials  were 
free  to  make  up  their  own  minds  as  to  the  proper  amount  for 
the  department  or  institution  concerned  and  although  this  mat- 
ter was  considered  in  executive  session,  no  vote  was  taken. 
Governor  Milliken  did,  however,  continue  to  hold  occasional 
conferences  with  his  legislative  aids  to  make  clear  to  them  his 
budget  program  and  procedure.  An  important  gathering  of  this 
kind  was  held  on  Wednesday  morning,  January  17  in  the  senate 

1  Kennebec  Journal,  January  18,  1917. 

48 


GOVERNOR     MILLI  KEN'S     PROGRAM 


chamber.  Senator  Higgins  moved  that  all  legislative  committees 
be  invited  to  meet  with  the  governor  and  council  in  budget  hear- 
ings and  this  was  agreed  to  as  it  was  fully  in  accord  with  the 
governor's  program.  In  reply  to  a  question  from  Senator  Deer- 
ing  of  York,  the  governor  said  that  formal  hearings  by  the  ap- 
propriations committee  would  be  unnecessary  unless  institutions 
or  departments  should  be  dissatisfied  with  the  appropriations 
recommended  in  the  budget.  Representative  Rounds  of  Port- 
land maintained  that  requests  for  salary  increases  would  probably 
come  in  later,  but  the  governor  expressed  the  hope  that  such  re- 
quests would  be  filed  at  once  and  that  the  committee  on  salaries 
and  fees  would  confer  with  him  as  to  the  policy  which  should  be 
pursued.1     The  governor  further  outlined  his  policy  as  follows: 

It  is  not  my  intention  to  point  out  what  special  appro- 
priations should  have  preference.  It  is  my  purpose,  to  in- 
dicate in  the  budget,  the  probable  income  under  existing 
tax  laws  and  at  a  tax  rate  agreed  upon  after  a  conference 
with  the  committees,  and  also  the  "  overhead  expenses" 
and  the  amount  of  money  left  over  to  meet  special  appro- 
priations which  are  asked  for.  The  legislature  will  then 
determine  what  special  appropriations  should  have  prefer- 
ence.    .     .     . 

The  recommendations  in  the  budget  will  balance;  the  re- 
port of  probable  income  on  one  side  and  the  recommended 
appropriations  on  the  other.  The  difficulty  that  we  have 
experienced  in  the  past  is  that  the  committees  have  not 
known  how  much  they  could  appropriate,  and  come  out 
even  on  their  tax  rate.  When  the  executive  budget  is 
presented,  the  committees  will  know  how  much  they  can 
appropriate  and  come  out  even,  and  that  if  they  increase 
those  appropriations  they  must  also  increase  the  revenue. 

The  Kennebec  Journal  read  as  follows  on  the  morning  of  Fri- 
day, January  19:  "  Thursday  was  another  strenuous  day  at 
Maine's  Capitol,  the  Budget  System  hearings  being  the  center 
of  attraction,  with  a  good  sized  crowd  in  attendance  at  the 
sessions  which  occupied  all  day."  These  hearings  began  that 
day  at  9  a.  m., — an  early  hour  for  the  legislators  who  rarely 
begin  their  sessions  before  10  a.  m., — and  items  were  pushed 
along  one  after  the  other  at  good  speed.  Under  the  new  system 
as  many  as  thirteen  hearings  could  be  held  in  one  afternoon, 
compared  with  three  or  four  under  the  old  program  of  purely 
legislative  committee  sessions.2 


1  Kennebec  Journal,  January  18. 

2  Statement  of  Senator  Higgins  of  Brewer,  March  27,  1917. 

5  49 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


Governor  Milliken  expressed  himself  as  highly  pleased  with  the 
progress  of  the  budget  hearings  at  this  time,  saying: 

We  have  made  excellent  progress  in  the  line  of  preliminary 
investigation  as  to  the  needs  of  the  various  state  depart- 
ments and  state-aided  institutions,  considering  that  the 
plan  is  new  to  practically  all  of  us  and  it  is  necessary  to  go 
slowly  in  order  to  firmly  establish  our  position.     .     .     . 

We  are  hoping  to  finish  the  work  of  the  public  hearings 
this  week.  That  will  mean  some  long  hours  at  the  hearings, 
probably  some  evening  sessions,  but  it  will  be  realized  that 
they  must  be  completed  before  the  meetings  of  the  com- 
mittees begin,  especially  those  which  will  have  any  con- 
nection with  the  financial  matters  of  legislation.1 

Senator  Higgins  was  also  quoted  at  the  same  time  as  one  of  the 
system's  strongest  advocates.  He  also  stated  that  there  would 
probably  be  legislation  later  in  the  session  to  make  the  budget 
system  a  part  of  the  legal  machinery  of  the  state. 

Practically  all  the  budget  hearings  were  completed  on  Friday, 
January  26,  as  Governor  Milliken  had  predicted.  Thus  in  two 
weeks  all  members  of  the  legislature,  and  the  council  and  all  other 
interested  parties  were  enabled  to  gain  a  comprehensive,  inti- 
mate acquaintance  with  the  demands  and  needs  of  the  various 
state  departments  and  institutions.  Throughout  these  days, 
Governor  Milliken  clearly  demonstrated  his  right  to  the  office  of 
chief  executive.  He  it  was  who  managed  the  hearings  and  he  it 
was  who  did  a  large  part  of  the  cross-examining,  although  he  in 
no  sense  monopolized  the  program.  Presiding  officers  were 
changed  according  to  the  nature  of  the  hearing.  When,  for 
example,  the  appropriation  for  the  state  hospitals  was  under 
consideration,  the  chairman  of  the  joint  committee  on  state 
hospitals  took  the  chair,  along  with  Governor  Milliken. 

Opinions  vary  as  to  how  generally  the  legislators  took  ad- 
vantage of  this  opportunity  to  learn  about  the  financial  problems 
confronting  them.  Senator  Holt  stated  that  they  attended  the 
hearings  only  when  they  were  personally  interested  as  they  were 
busy  most  of  the  time  in  getting  their  committees  organized. 
Governor  Milliken  believed  that  they  had  no  good  excuse  for 
absence,  however,  and  stated  that  many  senators  and  repre- 
sentatives expressed  gratification  for  the  opportunity  thus  given 
to  them.  Councillors  Farnsworth  and  Norton  were  enthusiastic 
over  the  knowledge  they  had  gained  from  the  hearings,  although 
they  did  not  think  that  facts  were  always  brought  out  very  clearly. 

1  Kennebec  Journal,  January  22,  1917. 

50 


GOVERNOR     MILLIKEN'S    PROGRAM 


At  the  conclusion  of  this  part  of  the  budget  procedure,  Gov- 
ernor Milliken  made  the  following  statement : 

Yes,  today's  hearings  virtually  complete  that  part  of  the 
budget  system  work,  although  several  parties  and  depart- 
ments will  have  to  be  consulted  at  times  before  making  our 
report  to  the  legislature.  Just  when  that  report  will  be 
made  is  hard  to  say  just  now,  but  I  doubt  if  it  is  made  before 
the  time  limit — Feb.  9 — placed  by  the  legislature  on  the 
reception  of  bills  and  petitions  for  private  and  special 
legislation.1 

During  and  after  the  budget  hearings,  both  the  executive 
and  legislative  branches  of  the  government  were  carrying  on 
their  own  private  investigations  wherever  they  deemed  it  neces- 
sary. Budget  Director  Callahan  stated  that  he  did  a  large  amount 
of  statistical  work,  comparing  all  appropriations  of  the  last  few 
years  with  the  actual  expenditures  in  each  case,  so  that  he  might 
intelligently  put  questions  at  the  budget  hearings.  He  also 
made  some  personal  investigations, — especially  into  the  situation 
at  the  University  of  Maine.  Although  Mr.  Callahan  was  ques- 
tioned about  his  exact  methods  and  a  request  was  made  to  see  his 
statistics,  the  writer  of  this  report  was  unable  to  locate  his  work- 
shop, to  gain  any  very  clear  conception  as  to  the  details  of  his 
work,  or  to  see  any  of  the  valuable  data  which  he  claimed  to  have 
gathered  and  to  have  worked  upon.  Governor  Milliken  had 
frequent  private  conferences  with  department  heads  with  refer- 
ence to  their  appropriations  and  was  making  up  his  own  mind 
about  the  proper  amounts  to  be  granted  as  a  result  of  his  own 
examinations,  the  facts  brought  out  at  the  budget  hearings  and 
the  investigations  made  by  Mr.  Callahan. 

Legislative  committees  also  made  their  own  investigations  in 
certain  cases  but  everything  was  done  by  both  executive  and 
legislative  leaders  to  reduce  the  cost  of  such  enterprises  to  a  mini- 
mum. Early  in  the  session  Governor  Milliken  requested  all 
committees  to  hand  in  to  him  an  estimate  of  their  expenses  for 
clerk  hire,  inspection  trips,  etc.  Senator  Higgins  said  that  the 
expenditure  of  state  funds  for  "  junket  trips"  had  been  greatly 
reduced, — that  three  members  of  a  committee  went  to  an  insti- 
tution in  1917  where  ten  went  in  former  years.  The  education 
committee  seems  to  have  been  the  only  real  offender  in  this 
direction.  The  entire  ten  went  off  to  visit  the  University  of 
Maine  and  four  of  the  state  normal  schools  right  after  the  session 


1  Kennebec  Journal,  January  27,  1917. 

51 


THE     GOVERNOR'S     BUDGET     IN     MAINE,     19V, 


began, — running  up  a  bill  of  some  $500. l  Resolve  Chapters  No. 
104,  118,  and  119  providing  for  the  expenses  of  legislative  com- 
mittees in  1917  totalled  $1,009.56,  of  which  $453.28  was  for  the 
committee  on  education.  No  other  committee  received  more 
than  $80.  This  record  is  in  marked  contrast  with  that  for  1913 
and  1915.  In  the  former  year,  the  auditor's  report  (p.  49)  shows 
an  expenditure  of  $8,009.55  for  legislative  committees  and  an 
additional  item  of  $8,691.90  for  legislative  hearings.  In  1915 
the  report  (p.  97)  shows  $7,655.43  under  the  former  heading. 
Legislative  committee  hearings  were  held  on  all  resolves  but  on 
account  of  the  budget  hearings  much  time  was  saved  when  items 
thus  came  up  the  second  time. 

It  might  be  said  that  the  chief  facts  were  brought  out  in  the 
co-operative  hearings  but  that  the  executive  and  legislative  de- 
partments proceeded  to  consider  them  separately,  although  the 
latter  consented  to  withhold  action  until  the  governor  had  made 
known  his  conclusions. 

The  governor  continued  in  frequent  conference  with  the  com- 
mittee chairmen.  On  Wednesday,  February  8,  he  was  in  session 
with  the  council  and  Mr.  Callahan  with  reference  to  the  form  in 
which  the  budget  report  should  be  made.  The  governor  outlined 
the  form  which  he  had  in  mind,  and  asked  the  council  to  discuss 
the  various  statistical  items  with  Mr.  Callahan.  The  governor 
also  said: 

.  .  .  In  the  preparation  of  appropriation  bills,  I  should  ask 
that  a  scientific  division  of  the  money  asked  for  should  be 
made  in  the  cases  of  all  state  institutions,  so  that  if  one 
should  ask  a  certain  total,  that  amount  would  be  divided 
into  its  proper  items,  such  as  maintenance,  salaries,  materials 
or  supplies,  repairs,  etc.  Then,  instead  of  a  number  of 
resolves  relating  to  one  institution,  all  the  items  should  be 
collected  into  one  lot  and  carried  in  one  resolve.     .     .     . 

The  Budget  Presented 

On  Wednesday,  February  14,  just  six  weeks  after  the  legislature 
of  1917  had  convened  for  its  first  session,  Governor  Milliken  called 
the  house  and  the  senate  together  in  joint  convention.  He  placed 
before  them  his  executive  budget,  consisting  of  five  statistical 
tables  and  read  an  address  of  some  length  in  explanation  of  the 
tables.     These  tables  were  as  follows: 

"A, — A  statement  of  the  current  assets  and  liabilities  at  the 
close  of  the  year  ending  Dec.  31,  1916; 


1  Statement  of  Senator  Higgins  and  Representative  Brewster,  March,  1917. 

52 


GOVERNOR     MILLI  KEN'S     PROGRAM 


"B, — A  statement  showing  the  prospective  revenue  for  1917 
and  1918,  and  the  probable  increase  which  would  result  from 
each  recommended  change  in  taxation; 

"  C, — Definite  detailed  recommendations  for  all  expenditures 
for  state  departments,  state  institutions  and  private  charitable 
institutions  in  comparison  with  the  appropriations  in  1915  and 
1916  and  the  amounts  requested  in  1917  and  1918; 

"D, — A  detailed  analysis  of  the  maintenance  appropriation  for 
each  of  the  institutions  to  be  wholly  supported  by  the  state  in 
1917,  1918  and  the  corresponding  expenditures  in  1915,  1916, 
— all  under  the  following  heads:  personal  services,  food  supplies, 
clothing,  repairs  and  equipment,  general  expenses; 

"E, — Report  of  the  commission  on  the  intangible  property  tax." 

His  address  took  up  these  tables,  after  a  brief  introduction 
which  was  in  part  as  follows: 

Gentlemen  of  the  legislature: 

I  have  sought  this  opportunity  of  presenting  to  you  in 
detail  a  complete  financial  program  showing  available  cash 
resources  on  hand  January  first,  1917;  revenue  which  may 
reasonably  be  expected  during  each  of  the  years,  1917  and 
1918,  with  no  change  in  existing  laws;  increase  of  revenue 
which  will  be  available  if  certain  proposals  regarding  taxa- 
tion are  enacted  into  law,  and  expenditures  recommended 
for  all  necessary  public  purposes  and  for  those  charitable 
and  educational  institutions  which  have  been  accustomed  to 
receive  aid  from  the  state  and  which  filed  their  requests  with 
the  state  auditor  on  or  before  the  first  Monday  in  December, 
in  accordance  with  the  law. 

Before  proceeding  to  a  discussion  of  the  estimates  them- 
selves, allow  me  to  recall  briefly  to  your  attention  some  of 
the  purposes  of  an  executive  budget  and  the  resulting  rules 
by  which  we  have  been  guided. 

The  budget  is  intended  to  help  the  people  exercise  through 
their  chosen  representatives  the  right  to  control  the  public 
purse, — to  determine  what  work  shall  be  done  by  the  state 
and  how  much  shall  be  paid  for  it.  It  is  important  not  only 
that  such  a  program  shall  afford  the  legislature  the  oppor- 
tunity to  compare  total  proposed  expenditures  with  prospec- 
tive revenue  before  any  expenditures  have  been  authorized, 
but  also  that  the  legislature  and  the  public  shall  be  furnished 
sufficient  information  to  permit  complete  analysis  of  each 
expenditure  and  definite  fixing  of  responsibility  upon  the 
spending  officer. 

The  real  budget  itself  is  contained  in  the  schedule  of  figures 
which  have  just  been  placed  in  your  hands  in  printed  form. 

It  is  an  important  function  of  the  budget  system  not  only 
to  enable  the  legislature  to  scrutinize  all  proposed  public 

53 


THE     GOVERNOR'S     BUDGET     IN     MAINE,     1917 


expenditures  before  authorizing  any  of  them,  but  also  to 
make  possible  definite  fixing  of  responsibility  upon  all  spend- 
ing officers  of  the  government  through  a  cost  system  suffi- 
ciently detailed  to  permit  accurate  comparison  between  ex- 
penditures for  like  purposes  in  different  departments. 

Appropriations  for  all  state  departments  should  be  made 
in  the  manner  indicated  for  these  institutions.  That  is,  a 
general  sub-division  of  the  maintenance  should  be  indicated 
but  special  individual  salaries  should  not  be  fixed.  The  de- 
tails of  expenditures  under  each  sub-division  should  be  left 
to  the  discretion  of  the  heads  of  departments  under  the  con- 
trol of  the  governor  and  council.  Definite  comparison 
should  always  be  possible  between  expenditures  for  like 
purposes  in  different  departments  in  proportion  to  the 
amount  of  public  service  rendered.  For  example,  it  is  ab- 
surd that  the  head  of  a  state  department  should  be  unable 
to  change  the  salary  of  a  clerk  or  stenographer  without  an 
act  of  the  legislature.  Only  the  salaries  of  responsible  heads 
of  departments  should  be  fixed  by  law.  All  other  details 
involving  personal  service  should  be  left  to  the  judgment  of 
the  head  of  a  department  within  his  appropriation  for  that 
purpose  and  under  the  general  oversight  of  the  governor 
and  council. 

It  does  not  seem  wise  to  suggest  at  this  time  all  the  changes 
necessary  to  introduce  this  scientific  method  for  maintenance 
appropriation  in  all  departments.  Because  the  budget  it- 
self is  new  it  has  seemed  better  to  suggest  beginning  this 
system  with  the  state  institutions  in  the  hope  of  pointing 
the  way  for  its  adoption  in  all  departments. 

•    By  way  of  summary,  the  governor  concluded  his  message  as 
follows  (italics  by  the  writer  of  this  report) : 

In  preparing  this  budget  the  financial  program  of  the  state 
has  been  treated  strictly  from  a  business  point  of  view  with 
the  idea  of  pointing  out  how  the  necessary  revenue  can  be 
most  fairly  and  equitably  secured  and  what  expenditures 
are  most  needed  for  the  general  welfare  of  the  people  of  the 
state.  Recommendations  both  for  taxation  and  for  expend- 
iture have  been  made  with  complete  disregard  for  political 
influence  of  individuals  and  the  comparative  importance  of 
cities  and  towns  where  institutions  asking  for  state  funds 
happen  to  be  located.  The  sole  purpose  has  been  to  offer 
a  program  which  would  raise  by  taxation  the  smallest  amount 
of  revenue  consistent  with  public  needs  and  distribute  these 
funds  to  the  various  institutions  and  departments  in  strict 
proportion  to  the  relative  importance  and  amount  of  public 
service  expected  from  each  of  them  during  the  years  of  1917— 
1918. 

As  you  all  know,  this  budget  program  is  in  fact  the  joint 
product  of  the  legislature  and  the  executive  department.     It  has 

54 


GOVERNOR     MILLIKEN'S     PROGRAM 


been  my  task  to  determine  how  much  of  the  available  revenue 
might  fairly  be  assigned  to  each  general  department  or 
institution,  but  within  the  limits  of  revenue  thus  imposed 
the  question  of  the  comparative  importance  of  different  items 
has  been  left  entirely  to  the  judgment  of  the  particular 
legislative  committee  in  charge  of  that  institution,  or  de- 
partment. First,  as  you  know,  public  budget  hearings 
covering  the  whole  field  of  expenditure  were  held  jointly  by 
the  governor  and  council  and  the  special  legislative  com- 
mittee concerned.  Following  these  hearings  the  details  of 
expenditure  for  each  department  and  institution  have  been 
worked  out  in  conference  between  the  legislative  committees 
and  myself. 

The  expenditures  recommended  in  this  program  should 
be  provided  for  by  taxation.  If  you  fail  to  adopt  the  entire 
program  of  indirect  taxation  you  should  increase  correspond- 
ingly the  direct  state  tax  up  to  the  total  of  the  budget  ap- 
propriation. No  increase  of  the  direct  tax  should  be  authorized 
for  the  purpose  of  making  appropriation  for  private  and  special 
purposes  outside  the  budget. 

You  will  note,  however,  that  strict  adherence  to  the  budget 
program  will  produce  a  surplus  of  $83,501.04  in  1917  and 
$163,080.01  in  1918.  From  this  must  be  deducted  the  total 
of  claims  against  the  state  which  you  may  approve  at  this 
session.  You  ought  also  to  consider  an  additional  appropri- 
ation of  $10,000  annually  for  pensions,  an  increase  of  $50,000 
in  the  appropriation  recommended  for  the  new  psychopathic 
building  at  the  Augusta  state  hospital,  and  $2,500  for  a  new 
building  at  the  Bath  military  and  naval  orphan  asylum  as 
first  charges  upon  this  surplus.  There  will  still  be  a  balance 
available  for  such  private  and  special  resolves  as  you  consider 
most  important  but  remember  that  we  must  be  sure  how 
much  revenue  is  available  before  finally  approving  any  such 
resolves  outside  the  budget. 

May  I  suggest  that  each  legislative  committee  having  in 
charge  resolves  included  in  the  budget  program  report  them 
immediately  and  consolidate  those  relating  to  one  depart- 
ment into  one  resolve.  If  you  are  considering  resolves  out- 
side the  budget  which  meet  your  approval,  provided  suffi- 
cient revenue  is  assured,  I  urge  you  to  hold  them  in  the 
committees  until  that  question  can  be  determined. 

/  suggest  that  the  committee  on  appropriations  in  preparing 
the  usual  appropriation  bills  include  in  one  bill  for  each  of  the 
years  1917  and  1918  all  items  recommended  in  the  budget  and 
report  in  a  separate  bill  for  each  of  the  two  years  all  items  ap- 
proved outside  the  budget.  The  public  will  then  know  ex- 
actly how  much  is  appropriated  for  each  year  beyond  the 
budget  recommendation  and  compare  these  amounts  with 
the  total  revenue  raised. 

We  are  trying  to  blaze  a  new  trail  together.  This  attempt 
to  produce  a  real  and  scientific  budget  has  been  attended  by 

55 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


all  the  puzzling  and  perplexing  difficulties  which  usually  beset 
the  path  of  the  pioneer.  We  are  greatly  indebted  to  Mr. 
(  allahan,  the  budget  director,  for  his  tireless  industry,  and 
to  the  officers  and  employes  of  departments  and  institutions 
for  their  cheerful  co-operation.  /  appreciate  more  than  I 
can  tell  you  your  unfailing  courtesy  toward  me,  the  self-restraint 
that  you  have  shown,  in  withholding  all  resolves  carrying  money 
until  after  the  budget  coidd  be  presented  and  the  splendid  pa- 
tience with  which  you  and  the  members  of  the  council  have 
worked  out  with  me  all  the  tedious  details  of  this  joint  pro- 
gram. I  shall  count  it  a  privilege  to  discuss  further  with  each 
of  you  at  any  time  all  details  of  the  program  which  may 
particularly  interest  you.  To  carry  out  the  schedule  exactly 
as  planned  will  require  rare  courage  and  self-denial  on  your 
part.  Many  of  you  will  have  to  abandon  cherished  local 
projects  in  favor  of  the  public  interest  of  the  state  at  large. 
Because  of  the  splendid  spirit  that  you  have  already  shown 
I  am  encouraged  to  present  this  program  to  you  in  the  firm 
belief  that  its  complete  adoption  will  justify  the  necessary 
sacrifice  on  your  part. 

In  addition  to  the  propositions  made  in  his  inaugural  address, 
the  governor  had  thus  set  forth  certain  other  principles  which 
he  desired  the  legislature  to  follow.  First,  he  wanted  absolute 
acceptance  of  his  budget  both  as  to  revenue  and  expenditure, — 
then  he  would  be  willing  that  the  legislature  should  pass  addi- 
tional appropriation  measures  if  they  would  at  the  same  time 
provide  additional  revenue  (that  is  if  the  estimated  surplus  was 
not  to  be  sufficient).  Second,  he  advised  the  enactment  of 
several  new  tax  laws  so  that  the  rate  for  the  general  state  tax 
might  not  have  to  be  increased  beyond  five  mills.  Third,  he 
desired  all  non-budget  items  to  be  included  in  one  appropriation 
act  and  all  budget  items  in  another,  for  each  of  the  years  1917 
and  1918. 

The  governor,  correcting  the  auditor's  estimate,  stated  that 
an  annual  tax  rate  of  eight  mills  would  be  necessary  unless  his 
new  taxes  were  adopted,  but  that  with  the  new  revenue  meas- 
ures five  mills  would  be  sufficient.  He  recommended  appropria- 
tions which,  compared  with  the  amounts  requested,  totalled: 

1917  1918 

Total  appropriations  requested.  .  .    $7,774,585.33     7, 167,397. 911 
Governor's  recommendations 6,711,849.58    7,106,297.09 

Very  little  criticism  of  the  governor's  program  appeared  in  the 
press.     The   public  interest  was   perhaps   reflected  in  the  fol- 

1  See  note  at  end  of  chapter,  page  82. 

56 


GOVERNOR     MILLI  KEN'S     PROGRAM 


lowing  news  heads  which  were  given  to  despatches  on  this  sub- 
ject: 

(Portland  Daily  Press,  Thursday  morning,  February  15) 

The  Budget  Presented  to  Legislature 


Probably  the  Ablest  and  Most  Complete  Statement  of  the  Kind 


(Portland  Evening  Express  and  Advertiser,  Wednesday  evening,  February  14 — 

two-column  head  on  first  page) 

Governor  Delivers  Maine's  First  Budget  to  78th  Legislature 


(Lewiston  Evening  Journal,  Thursday  morning,  February  15) 
Governor  Milliken  Delivers  First  Budget  Message 


Senate  and  House  in  Joint  Convention  Hears  Outline  of  Complete  Financial 

Program  of  This  Administration — The  Facts  and  the  Figures 

Put  Clearly  Before  Every  Legislator 


(Lewiston  Daily  Sun,  Thursday  morning,  February  15 — two-column  head) 

Governor  Milliken's  Budget  Message  Loudly  Applauded 

Editorial  comment  was  rather  scarce.  The  Portland  Press 
seems  to  have  been  the  only  paper  which  dealt  with  the  matter 
at  any  length.  On  February  15,  its  leading  editorial  entitled 
"The  Budget"  contained  the  following: 

Yesterday  Governor  Milliken  presented  the  budget  upon 
which  he  has  been  working  since  the  legislature  convened. 
It  is  the  most  complete  and  satisfactory  presentation  of  the 
state's  income  and  needs  that  has  ever  been  made. 

He  likewise  makes  recommendations  for  the  abolishment 
of  some  appropriations  for  some  departments,  the  transfers 
of  others  and  many  important  changes,  the  advisability  of 
which  will  be  for  the  legislature  to  determine,  although  on 
their  face  they  all  seem  to  be  well  conceived. 

At  any  rate  the  budget  has  laid  the  facts  as  they  are  before 
the  legislature  and  the  people  so  that  they  may  know  defi- 
nitely and  positively  just  what  they  have  to  do  and  will 
understand  what  is  required  and  what  should  be  done.  It  is 
Maine's  first  attempt  at  inaugurating  a  budget  system  and 
while  there  will  be  some  exception  taken  to  some  of  the  gov- 
ernor's recommendations,  it  must  be  admitted  that  the  in- 
novation is  an  excellent  one  and  will  tend  toward  economy 
and  will  prevent  log-rolling  and  other  evils  attending  the  ex- 
penditure of  the  people's  money. 

57 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


On  the  following  day  the  Press  continued  its  comment,  stating: 

The  governor's  budget  message  and  the  accompanying 
report  on  the  taxation  of  intangible  property  comprise  a 
pretty  imposing  document  and  it  is  one  which  the  legislators 
will  find  no  easy  task  to  study  and  digest.  It  is  the  most 
important  matter  of  the  session,  however,  and  means  much 
for  the  future  of  the  state. 

The  Water ville  Sentinel,  however,  in  its  issue  of  February  19, 
reported  much  grumbling  at  Augusta  and  did  not  print  the  bud- 
get story  on  its  front  page.  The  Sentinel  is  a  Democratic  organ. 
All  the  other  papers  referred  to  are  Republican — except  the 
Lewiston  Sun. 

Committee  Hearings 

There  was  nothing  now  to  clog  the  grist  mill  procedure.  Bills 
and  resolves  involving  the  state's  money  went  through  their 
various  stages  about  as  usual.  Legislative  committees  held 
most  of  their  hearings  on  financial  resolves  and  bills  during 
February,  both  before  and  after  the  budget  message,  but  as  had 
been  predicted,  the  budget  hearings  had  in  many  cases  made 
further  proceedings  of  this  nature  unnecessary.  Thus  with 
reference  to  the  hearing  given  the  state  board  of  charities  and 
corrections,  by  the  appropriations  committee,  the  Kennebec 
Journal  of  February  8,  1917  reads: 

Mr.  Bagley  had  so  fully  covered  the  matter  at  the  budget 
hearing  that  chairman  Higgins  thought  it  unnecessary  for 
him  to  go  further  in  the  matter.     .     .     . 

Committees,  at  least  in  Maine,  are  usually  rather  satisfied  with 
their  own  recommendations  and  do  not  care  to  have  them 
considered  lightly  by  the  legislative  body  itself.  A  prominent 
senator  told  the  writer  very  proudly  that  the  appropriations  com- 
mittee had  never  in  six  years  had  any  of  its  recommendations 
turned  down.  Most  of  the  committees  seemed  to  have  under- 
stood that  the  majority  leaders  in  senate  and  house  stood  behind 
the  governor's  budget  recommendations  and  therefore  very  little 
attempt  was  made  to  override  his  wishes. 

Difficulty  did  develop,  however,  in  the  committee  on  educa- 
tion, in  the  committee  on  ways  and  bridges  and  with  reference 
to  a  few  items  which  came  under  the  jurisdiction  of  the  appro- 
priations committee  and  one  or  two  of  the  other  committees. 
Of  significance  also  in  this  connection  is  the  legislative  budget 

58 


GOVERNOR     MILLI  KEN'S     PROGRAM 


proposed  by  the  committee  on  salaries  and  fees  for  all  financial 
matters  passed  upon  by  that  committee  and  adopted  by  a  senate 
caucus. 

It  should  be  remembered  that  these  committees  meet  in  execu- 
tive session  after  their  public  hearings,  that  their  respective 
clerks,  who  are  usually  employed  for  part  time  only,  do  not 
always  keep  a  record  of  the  action  taken  by  the  committee,  and 
that  stenographic  reports  are  not  available  either  for  the  hear- 
ings or  for  the  executive  sessions.  Clerk  Mallett  of  the  appro- 
priations committee  kept  absolutely  no  tabulation  of  the  votes 
taken  in  his  committee  although  quite  complete  records  of  all 
formal  decisions  of  the  taxation  committee  had  been  preserved, 
and  were  put  at  the  disposal  of  the  writer.  Executive  sessions, 
of  course,  are  not  open  to  the  public  but  both  Chairman  Holt  of 
the  taxation  committee  and  Chairman  Higgins  of  the  appropria- 
tions committee  made  it  possible  for  the  writer  to  attend  all  the 
sessions  of  their  respective  committees  which  were  held  during 
the  last  ten  days  of  the  legislative  term. 

The  committee  on  education  had  to  hold  a  number  of  hearings 
as  several  of  the  schools  and  academies  which  had  been  accus- 
tomed to  receive  state  aid  had  not  filed  their  estimates  with  the 
auditor  and  were  not  provided  for  in  the  governor's  budget. 
This  committee  also  reduced  certain  of  the  appropriations  recom- 
mended by  the  governor  for  private  academies,  as  follows:  1917 — 
Lee  Academy,  $2,000  to  $750;  St.  Joseph's  Academy,  $1,500  to 
$1,000;  Van  Buren  College,  $1,000  to  $500;  1918— Lee  Academy, 
$2,000  to  $500,  and  a  reduction  equal  to  that  in  1917  for  St. 
Joseph's  Academy  and  Van  Buren  College.1 

An  interesting  sidelight  on  legislative  influences  and  a  vivid 
picture  of  one  of  the  education  committee's  hearings  is  given  in 
an  account  of  the  session  on  February  15,  1917: 

A  charming  youg  lady  filled  with  enthusiasm  for  the 
school  she  represented  caused  a  great  laugh  when  she  ap- 
peared before  the  committee  on  education  Thursday  after- 
noon and  innocently  inquired:  " Perhaps  people  are  in  the 
habit  of  asking  for  more  than  they  know  they  will  get — are 
they?"  Everybody  set  up  a  howl  and  the  dignified  Senator 
Walker  who  was  presiding,  laughed  heartily  at  the  question 
so  innocently  put  by  such  an  apt  lobbyist.  The  young  lady 
was  Mrs.  Robert  Owen,  wife  of  the  principal  of  Erskine 
Academy  in  China  and  a  teacher  in  the  school,  which  through 


1  House  Document  No.  613,  Second  New  Draft,  78th  Legislature. 

59 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


representatives  was  asking  for  $750  for  each  of  the  years  1917 
and  1918. 

"You  have  the  interest  of  the  school  at  heart,  haven't 
you?"  asked  Senator  Walker. 

"Indeed  I  have,"  replied  the  vivacious  young  lady,  and  so 
well  did  she  tell  the  needs  of  the  school  that  doubtless  the 
committee  will  favor  an  "ought  to  pass"  on  the  resolve.1 

The  committee  on  ways  and  bridges  had  perhaps  the  most 
difficult  task  of  all.  In  his  budget  message,  the  governor  recom- 
mended a  total  appropriation  of  $400,000  for  state  aid  for  mar- 
ket roads  in  1917  and  an  equalization  fund  of  $50,000  additional 
to  provide  for  especially  deserving  cases.  On  this  subject  he 
said: 

A  special  equalization  fund  has  been  recommended  to  take 
care  of  urgent  needs  of  particular  roads  in  accordance  with 
the  best  judgment  of  the  highway  commission.  I  earnestly 
urge  you  to  leave  to  the  commission  the  task  of  determining 
where  this  money  is  needed  most,  instead  of  attempting  to 
parcel  it  out  here  by  special  legislative  resolves.2 

This  committee  had  held  budget  hearings  but  these  con- 
cerned only  the  general  principles  to  be  followed.  The  proceed- 
ing would  have  been  too  lengthy  if  every  town  and  plantation 
had  been  allowed  to  present  its  case  for  an  asphalt  pavement  in 
front  of  the  constable's  office.  Such  special  resolves  for  improve- 
ments in  all  parts  of  the  state  were  fed  into  the  grist  mill,  how- 
ever, and  the  committee  soon  found  124  of  them  on  its  docket. 
These  aggregated  an  expenditure  of  only  $843,694.03.  The 
governor  was  consulted  and  sternly  refused  to  hear  of  any  such 
amount.  He  set  the  limit  at  $150,000.  The  committee  was 
obedient  and,  not  including  two  resolves  which  were  "revived" 
from  the  1913  session,  cut  the  total  of  the  resolves  to  $147,302.41, 
which  it  divided  into  78  separate  chapters.3 

Certain  institutions  which  for  one  reason  or  another  had 
failed  to  secure  a  place  in  the  governor's  budget  brought  up  their 
cases  to  the  appropriations  committee.  It  is  interesting  to  note 
that  Secretary  Bagley  of  the  state  board  of  charities  and  correc- 
tions who  had  been  the  committee's  right  hand  man  in  the  execu- 
tive sessions  which  dealt  with  appropriations  recommended  in 
the  budget,  was  not  invited  to  attend  those  sessions  at  which 
these  special  matters  were  taken  up  and  decided.     The  sisters 


1  Kennebec  Journal,  February  16,  1917. 

2  ( iovernor  Milliken's  Budget  Message,  page  x. 

'Statement  of  Representative  Stubbs  and  Committee's   Tabulated  Sum- 
mary (unpublished). 

60 


GOVERNOR     MILLI  KEN'S     PROGRAM 


of  charity,  Waterville  and  the  Calais  hospital  had  filed  no  state- 
ment with  the  auditor  and  were  not  therefore  considered  at  the 
budget  hearings.  The  appropriations  committee  voted  them  each 
$500  for  1917  and  $500  for  1918.  The  home  for  aged  women  at 
Belfast  had  requested  $600  a  year  but  this  had  been  refused  at 
the  time  of  the  budget  hearings.  It  was  granted  $200  a  year. 
Secretary  Bagley  as  already  stated  had  made  a  most  compre- 
hensive report  to  the  governor  on  the  state  of  all  such  institu- 
tions with  recommendations  which  were  adopted  in  the  governor's 
budget  almost  without  change.  It  is  therefore  not  difficult  to 
understand  why  Secretary  Bagley's  attendance  at  this  subse- 
quent time  was  not  requested.  A  resolve  of  $750  for  1917  and 
$750  for  1918  in  favor  of  Anson  academy  also  came  from  the 
appropriations  committee  with  a  favorable  report.  Ordinarily 
this  would  have  gone  to  the  committee  on  education  but  personal 
and  community  complications  forced  the  sponsor  for  the  academy 
in  the  legislature  to  seek  a  review  of  this  request  in  another  com- 
mittee room,  and  this  was  agreed  upon  by  the  "  powers  that  be." 
It  was  understood  by  the  appropriations  committee  that  the 
governor  would  approve  their  action  on  these  measures  before 
they  voted  "  ought  to  pass." 

Fifty-five  measures  were  sent  to  the  committee  on  salaries 
and  fees.  Most  of  these  matters  had  not  been  considered  in  the 
budget  hearings.  The  governor,  however,  kept  in  touch  with 
this  situation  and  disapproved  forty  of  them.  Only  seven  of  the 
measures  which  involved  increased  appropriations  were  reported 
favorably  by  the  committee, — the  total  increase  being  only  $2,500. 
Additional  requests  for  upwards  of  $2,700  were  refused  and  a 
senate  caucus  was  held,  attended  by  from  thirteen  to  fifteen 
senators.  A  majority  voted  in  favor  of  the  committee's  report. 
Whether  the  action  of  this  caucus  bound  all  the  fifteen  senators 
was  evidently  not  clear  as  later  developments  showed.  The  fol- 
lowing excerpts  from  the  Legislative  Record  dealing  with  this 
question  are  worthy  of  insertion  here  (Senate,  April  5,  1917) : 

Mr.  Davies:  Mr.  President,  it  is  not  a  question  of  the 
competency  of  the  register  of  deeds  of  Kennebec  county. 
Strange  as  it  may  seem  under  what  is  now  here  before  us,  it 
makes  no  difference.  The  question  that  presents  itself  is 
whether  we  are  going  to  stand  by  the  vote  taken  in  the  Sen- 
ate caucus  held  in  the  judiciary  room  that  we  would  adopt 
the  majority  reports  of  the  committee  on  salaries  and  fees. 
Thus  far,  we  have.  This  is  the  first  time  that  any  senator 
has  proposed  that  we  should  break  away  from  that  vote. 

61 


THE     GOVERNOR'S    BUDGET    IN     MAINE,     1917 


Now  it  may  well  occur  to  many  of  you  that  very  likely 
senators  from  other  counties,  if  it  had  not  been  for  that  vote 
that  they  would  have  come  here  to  press  their  claims  for 
salaries,  but  we  have  felt  that  we  were  bound  by  that  vote 
up  to  now.     .     .     . 

Mr.  Swift  of  Kennebec:  The  senator  from  Cumberland, 

Senator  Davies,  has  referred  to  the  meeting  which  was  held 

in  the  judiciary  room,  and  if  my  memory  serves  me  correctly 

there  were  15  members  of  the  senate  present,  eight  of  whom 

voted  in  favor  of  standing  by  the  committee  report.     The 

senators  from  Kennebec  did  not  agree  to  stand  by  any  action 

taken  there,  and  I  want  to  ask  you,  in  all  fairness,  if  it  is 

fair  for  eight  members  of  this  body  to  control  the  vote  of 

all  the  members  of  the  senate?1 

So  far  as  could  be  ascertained  in  Augusta  during  the  last  three 

weeks  of  the  session,  there  were  few  other  matters  taken  up  in 

committee  which  seriously  concerned  the  success  or  operation  of 

the  budget  system.     Most  of  the  resolves  sanctioned  by  the 

budget  went  through  their  respective  committees  in  the  routine 

fashion. 

Debates  in  House  and  Senate 

In  the  sessions  of  the  house  and  senate  references  to  the  budget 
were  few  and  far  between.  Only  when  an  attempt  was  made  to 
reduce  the  governor's  allotment  for  Lee  academy  did  it  receive 
marked  attention.  True  it  is  that  there  were  resolves  under 
consideration  at  one  time  or  another  which  were  not  included  in 
the  governor's  budget  but  on  such  occasions  the  budget  seems 
to  have  been  largely  ignored. 

The  academy  cases  in  the  house  are  spread  over  four  pages  in 
the  Legislative  Record;  and  in  the  senate,  a  record  of  the  debate 
runs  over  about  five  pages.  In  the  house  on  March  21,  Mr. 
Kneeland  of  Lincoln  started  the  argument  by  offering  House 
Amendment  "A"  which  would  increase  the  appropriation  for 
Lee  Academy  from  $750  as  recommended  by  the  committee's 
resolve  to  $2,000  as  recommended  in  the  budget.  He  closed  his 
remarks  as  follows: 

We  asked  for  $2,000  for  each  of  the  years  1917  and  1918  as  a 
special  appropriation  and  the  budget  recommended  the  same. 
I  had  a  talk  with  Governor  Milliken  and  he  said  he  was  ac- 
quainted with  Lee  academy  and  knew  what  it  was  doing, 
and  that  he  recommended  $2,000  for  each  of  the  years 
1917  and  1918,  and  did  not  see  why  the  committee  cut  it 
down.     .     .     . 


1  Legislative  Record,  78th  Legislature,  pp.  1287,r1289. 

62 


GOVERNOR     MILLI  KEN'S    PROGRAM 


Mr.  Snow  of  Mars  Hill  sprang  to  the  defence  of  the  committee 

stating  that  the  requests  of  other  schools  had  also  been  reduced 

and  that  if  Lee  academy  were  given  an  increase,  the  other  cases 

also  would  be  reopened.     Mr.  Pattee  of  Harmony  followed  up 

Mr.  Snow's  thought  by  stating  that, 

If  this  matter  is  opened  up,  I  certainly  shall  offer  some 
amendments  to  some  academy  appropriation. 

Mr.  Reed  of  Bangor  gave  the  budget  most  loyal  support,  though 
a  member  of  the  Democratic  party: 

I  beg  to  submit  with  all  consideration  to  the  committee 
on  education  that  it  was  my  privilege  and  my  pleasure 
to  appear  for  this  institution  before  the  budget  committee. 
I  have  heard  of  no  other  meetings  anywhere  at  which  this 
proposition  was  considered.  Now  the  budget  committee, 
taking  into  consideration  the  merits  of  this  institution,  and 
with  the  approval  of  the  governor,  if  you  please,  recommended 
$2,000  for  the  years  1917  and  1918  for  the  maintenance  of 
this  institution  in  Lee.     .     .     -1 

Mr.  Snow  subsequently  asserted  that  representatives  of  Lee 
academy  had  appeared  twice  before  the  committee  on  education. 
He  made  no  reference  to  the  recommendations  in  the  budget. 

Mr.  Sisson  of  Island  Falls  found  himself  in  a  very  "peculiar 

position"  but  concluded  as  follows: 

.  .  .  I  say  to  you,  Mr.  Speaker,  and  to  every  one  of 
my  brother  representatives  that,  when  I  vote,  I  do  not 
consider  that  I  vote  against  the  education  committee; 
they  had  to  pare  down  every  appropriation.  But  I  do  say 
that  as  the  governor  in  his  budget  allowed  $2,000,  we  ought 
to  vote  $2,000  for  that  institution.     .     .     . 

The  committee  could  not  stand  against  the  budget  in  action 
and  succumbed  weakly,  in  the  person  of  Mr.  Boman  of  Vinal- 
haven : 

Mr.  Speaker,  as  a  member  of  the  committee  on  education, 
I  feel  the  matter  was  discussed  thoroughly  in  the  committee 
but  why  the  appropriation  was  given  as  it  was,  I  do  not  re- 
collect just  now;  but  Mr.  Speaker  and  gentlemen,  if  I  have 
erred,  I  am  willing  to  make  amends,  and  if  the  house  insists 
upon  this  proposition,  I  have  no  objection  to  having  the 
committee's  recommendation  turned  down. 

The  Legislative  Record  continued: 

The  speaker  pro  tern:  "  The  question  is  on  the  acceptance 
of  the  amendment.  Those  in  favor  of  the  passage  of  the 
amendment  will   please  rise." 


1  Legislative  Record,  78th  Legislature,  pp.  703-706. 

63 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


A  division  being  had, 

One  hundred  and  five  voting  in  the  affirmative  and  two 
in  the  negative,  the  amendment  was  adopted.     .     .     .* 

Thus  was  the  budget  vindicated  in  its  first  real  trial  of  strength 
in  the  house. 

This  academy  question  did  not  come  up  for  discussion  in  the 
senate  until  six  days  later.  At  this  time  Senator  Walker,  chair- 
man of  the  committee  on  education,  offered  an  additional  amend- 
ment, putting  the  Lee  academy  appropriation  at  $1,500  for  each 
year.  This  was  senate  amendment  "A"  to  house  amendment 
"A."  Senator  Walker  threw  some  real  light  on  the  position  of 
the  committee: 

In  the  early  days  of  the  legislature,  we  heard  a  good  deal 
about  the  budget.  Many  hearings  were  held  before  commit- 
tees having  charge  of  appropriations.  Progress  seemed  slow. 
Time  was  passing.  In  the  fourth  week  of  this  session,  the 
committee  on  education  had  a  budget  hearing.  Notices 
were  sent  by  the  executive  department  to  most  of  the  schools 
which  had  already  asked  for  an  appropriation,  for  a  hearing 
on  a  certain  day.  Many  of  these  schools  did  not  get  their 
notices  in  time  to  appear  at  the  hearing.  Some  of  the  schools 
were  represented  at  the  hearing,  some  were  not. 

When  your  committee  met  in  executive  session,  we  were 
not  in  a  position  to  report  on  the  type  of  school  of  which 
Lee  academy  is  one.  Resolves  for  other  academies  had 
been  introduced  into  the  legislature,  but  were  not  in  the 
hands  of  the  committee.  Other  resolves  would  be  intro- 
duced. We  didn't  know  how  much  money  we  would  be 
allowed  for  all  the  academies.  We  wanted  to  be  fair  to  all 
and  grant  special  privileges  to  none.  We  therefore  reported 
to  the  governor,  that  we  could  not  fairly  and  intelligently 
act  on  the  matter  at  that  time.  We  were  asked  if  we  should 
report  more  than  was  requested  by  the  different  schools  and 
we  replied  that  we  should  not.  The  next  day  the  budget 
appeared  recommending  $2,000  for  Lee  academy  for  instruc- 
tion for  each  of  the  years  1917  and  1918.  .  .  .  The 
committee  on  education  after  due  notices,  and  hearings  on 
the  different  schools  reported  ought  to  pass  for  the  amounts 
carried  in  the  resolve  under  discussion.  This  report  went 
to  the  house  and  comes  back  amended  by  the  Lee  amend- 
ment. It  is  said  that  the  house  deliberated  upon  this  prop- 
osition and  that  some  of  its  members  deliberated  orally. 
You  know  the  house  is  a  great  deliberating  body.     .     .     . 

The  reasons  given  in  these  vocal  effusions  for  the  increase 
were  "We  are  it."  And  as  a  clincher — the  budget  recom- 
mendations of  the  governor.     It  was  steam  rolled  through 


1  Legislative  Record,  78th  Legislature,  pp.  705-706. 

64 


GOVERNOR     MI LLI KEN'S     PROGRAM 


the  house,  not  giving  a  moment's  thought  to  the  other 
schools  appearing  in  the  budget  or  out  of  the  budget.  If  the 
budget  recommendations  are  to  be  taken  as  against  the 
recommendations  of  the  committee,  why  not  take  all  the 
recommendations  in  the  budget  and  reject  all  the  recommen- 
dations of  the  committee.  If  the  budget  report  on  this  type 
of  school,  hastily  made,  is  everything,  and  the  report  of  the 
committee  after  careful  thought  and  investigation,  is  nothing, 
our  hearings  on  the  different  schools  have  been  nothing  but 
a  farce. 

He  then  went  on  to  state  his  case  against  Lee  academy  speci- 
fically, asserting  that  only  in  some  mysterious  way  had  previous 
appropriations  of  $1,000  and  $1,500  for  Lee  academy  escaped 
the  pruning  knife,  which  everyone  thought  had  really  been  exer- 
cised. He  concluded  by  stating  that  his  committee  had  only 
tried  to  distribute  its  $25,000-130,000  according  to  its  own  best 
judgment. 

:  Mr.   Higgins  of  Penobscot,  the  governor's  right-hand  man, 
spoke  at  more  than  his  accustomed  length  in  support  of  the 
$2,000  sum  but  hardly  referred  to  the  budget. 
Mr.  Walker  then  laid  down  his  last  cards: 

If  it  is  the  sense  of  this  senate  that  the  appropriations  be 
doubled,  I  will  hold  up  both  hands  for  the  doubling  of  all  the 
appropriations.  If  it  is  the  sense  of  the  senate  that  this 
amendment  pass,  why  not  pass  an  amendment  also  for  the 
Saint  Joseph  academy  and  the  Van  Buren  college.  Al- 
though Catholic  schools,  they  are  recommended  by  the 
governor,  and  I  will  not  stand  for  an  increase  in  this  appro- 
priation unless  we  stand  for  an  increase  in  the  appropriation 
for  those  schools.  I  know  that  those  institutions  are  doing 
splendid  work  for  the  state  of  Maine  and  are  entitled  to  such 
consideration  as  we  give  other  academies  that  are  private 
institutions.     .     .     -1 

On  motion  of  Mr.  Higgins,  Mr.  Walker's  amendment  was 
"indefinitely  postponed"  and  house  amendment  "A"  was 
passed.  Senate  amendments  "B,"  "G,"  and  "D,!  were  then 
adopted.  These  raised  the  appropriations  for  St.  Joseph's 
academy  and  Van  Buren  college  up  to  the  budget  recommenda- 
tions and  provided  amounts  for  two  other  academies  not  men- 
tioned in  the  budget. 

Provided  thus  with  four  appendages,  the  academy  resolve 
was  returned  to  the  house  and  passed  with  the  explanation  from 
Mr.  Barnes  of  Houlton,  the  governor's  spokesman  in  that  as- 


1  Legislative  Record,  78th  Legislature,  pp.  878-880. 
6  65 


THE     GOVERNOR'S     BUDGET     IN     MAINE,     1917 


sembly,  that  "if  we  can  avoid  putting  any  more  amendments  on 
it,  it  will  probably  go  through  all  right."1 

Thus  even  the  committee  which  had  at  first  tried  to  cut  down 
the  budget,  eventually  demanded  that  if  one  academy  be  ac- 
corded its  budget  quota,  the  others  should  be  treated  likewise ! 

Another  resolve  which  occasioned  some  discussion  in  the  house 
was  an  emergency  measure  appropriating  $60,000  for  "the  repair 
and  reconstruction  and  making  fire-proof  the  Harlow  building 
at  the  Augusta  state  hospital,"  which  was  partially  destroyed 
bv  fire  toward  the  close  of  the  legislative  session.  It  was  intro- 
duced  in  the  senate  by  Mr.  Swift  of  Augusta  who  stated  that  it 
had  the  approval  of  the  governor  and  the  unanimous  endorsement 
of  the  committee  on  insane  hospitals.  It  was  at  once  passed  to 
be  engrossed  under  suspension  of  the  rules.  In  the  house  Mr. 
Rounds  of  Portland  raised  a  question  about  the  amount  of  the 
appropriation  but  he  was  soon  satisfied  by  an  explanation  from 
the  chairman  on  the  part  of  the  house  of  the  committee  on  insane 
hospitals.2 

The  binding  power  of  the  senate  caucus  on  the  report  of  the 
committee  on  salaries  and  fees,  as  has  already  been  noted,  came 
up  for  consideration.  The  vote  with  reference  to  the  salary  for 
the  register  of  deeds  of  Kennebec  county  was  22  to  five  in  sup- 
port of  the  committee's  report.  This  committee  also  reported  in 
favor  of  a  $500  reduction  in  the  salary  of  the  insurance  com- 
missioner. On  the  final  vote,  only  four  senators  voted  against 
the  report  to  eighteen  who  backed  up  the  decision  of  the  caucus.3 

In  the  debates  cited  reference  has  constantly  been  made  to 
the  fact  that  certain  appropriation  measures  were  or  were  not 
favored  by  the  governor.  He  was  now  on  his  last  lap  with 
the  legislators  and  was  proving  himself  as  successful  a  leader  as 
during  the  earlier  stages.  He  did  not  try  to  force  anyone's  hand, 
but  he  was  in  constant  touch  with  proceedings  in  both  houses  and 
knew  that  in  senator  Higgins  and  representative  Barnes  he  had 
two  men  whose  program  was  in  hearty  accord  with  his  own. 
His  wishes  were  made  known  to  them  and  their  opinion  received 
the  greatest  amount  of  consideration  at  his  hands.  All  non- 
budget  resolves  which  were  enacted  by  the  legislature,  with  very 
few  exceptions,  received  at  least  the  tacit  approval  of  both  the 
executive  and  legislative  leaders  before  they  reached  the  enact- 
ment stage.     Perhaps  the  severest  strain  between  the  leaders 


1  Legislative  Record,  78th  Legislature,  p.  1137. 

2  Ibid.,  pp.  1290,  1295. 

3  Ibid.,  pp.  835,  969. 

66 


GOVERNOR     MILLIKEN'S    PROGRAM 


came  with  reference  to  the  three  charitable  institutions  which 
had  been  voted  appropriations  by  the  appropriations  committee 
without  the  approval  of  the  state  board  of  charities  and  cor- 
rections. The  governor  called  Senator  Higgins  into  his  office 
and  they  went  over  the  situation  together.  Senator  Higgins 
thought  it  wTise  to  put  through  the  appropriations,  probably  be- 
cause of  some  complications  on  the  personnel  side  in  the  senate, 
and  the  governor,  apparently  with  reluctance,  gave  his  consent.1 
An  account  has  already  been  given  of  the  governor's  connection 
with  the  reports  of  the  committee  on  salaries  and  fees,  ways  and 
bridges  and  education;  and  of  how  Mr.  Swift  in  proposing  an 
appropriation  of  $60,000  for  the  repairing  of  the  Augusta  state 
hospital  building  was  careful  to  state  that  the  measure  was  ap- 
proved by  the  governor. 

The  Governor  as  an  Adviser 

But  the  governor  did  not  touch  the  legislature  through  the 
medium  of  legislative  leaders  and  committee  chairmen  alone. 
His  contact  was  in  no  sense  of  the  executive  chamber  variety. 
Twice  in  the  early  days  of  the  session  he  addressed  a  joint  con- 
vention of  the  two  houses  at  least  in  part  on  financial  matters. 
Twice  again  did  he  communicate  with  them  formally  on  similar 
problems.  On  Monday,  April  2,  1917,  he  forwarded  to  the 
senate  and  the  house  a  written  communication  on  the  financial 
situation,  dealing  chiefly  with  the  treatment  which  was  being 
accorded  his  taxation  recommendations.  Those  paragraphs  of 
his  communication  which  deal  with  the  appropriations  and  which 
also  summarize  his  message  with  reference  to  the  taxation  meas- 
ures follow: 

I  suggested  a  reduced  schedule  of  expenditures  involving 
rigid  economy  in  the  management  of  all  departments  and 
institutions  and  showed,  that  by  adhering  to  this  schedule 
and  enacting  certain  laws  increasing  the  revenue  from  in- 
direct taxation,  the  entire  necessary  public  financial  program, 
including  the  mill  tax  for  roads  could  be  accomplished  with 
a  direct  state  tax  of  only  five  mills  for  each  year,  the  same 
rate  that  has  heretofore  prevailed.  This  means  a  saving  of 
more  than  $3,000,000  to  the  people  of  the  state  in  the  two 
years  as  compared  with  the  tax  rate  indicated  by  the  esti- 
mate filed  with  the  state  auditor. 

The  schedule  of  expenditures  has  in  fact  been  worked  out  in 
almost  exact  accordance  with  the  budget  suggestions.  The 
total  public  expenditures  agreed  upon  for  1917  exceed  the 

1  Statement  of  Senator  Higgins,  March  27,  1917. 

67 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


budget  recommendations  by  only  $7,292.08.  The  total 
excess  in  1918  is  $38,007.67.  In  each  instance  the  changes 
have  been  agreed  upon  in  conference  with  the  committees 
having  the  appropriations  in  charge.  I  wish  to  express  to 
all  the  members  of  the  Legislature  and  especially  to  the 
committees  having  the  appropriations  in  charge,  my  sincere 
appreciation  of  the  unfailing  co-operation  on  your  part  that 
has  made  this  result  possible. 

You  have  also  been  willing  at  my  request,  to  delay  action 
upon  special  items  outside  the  budget  until  it  should  become 
evident  how  much  revenue  would  be  available.  By  arrange- 
ment with  the  committee  on  appropriations  and  financial 
affairs,  these  items  will  be  provided  for  in  a  supplementary 
appropriation  bill.  Only  the  budget  items  have  been  in- 
cluded in  the  first  appropriation  bill  for  each  of  the  years 
1917  and  1918.1 

(Note.  The  excess  for  1918  was  given  incorrectly  in  the 
message;  it  should  have  been  $8,007.67.  This  mistake  was 
later  recognized  by  the  Governor.2) 

Despite  the  distinction  which  the  governor  made  between  the 
budget  and  the  non-budget  bills,  however,  no  one  was  apparently 
keeping  accurate  record  of  the  resolves  as  they  were  introduced 
and  went  through  their  various  stages.  Mr.  Callahan,  the  bud- 
get director,  kept  no  record  himself  and  Mr.  Mallett,  clerk  of  the 
committee  on  appropriations  and  financial  affairs,  to  whom  he 
went  for  information,  kept  no  daily  register  of  the  fate  which  his 
committee's  bills  and  resolves  were  receiving  at  the  hands  of  the 
house  and  senate.  In  fact  not  until  the  end  of  the  session  did  he 
even  have  an  accurate  list  of  the  non-budget  resolves  which  had 
been  finally  enacted.  The  governor  could  therefore  rely  but 
little  upon  his  staff  expert  for  scientific  data  as  to  the  state  of  af- 
fairs in  the  legislature.  In  accordance  with  custom,  however,  all 
resolves  carrying  money  were  sent  to  the  appropriations  com- 
mittee after  they  had  been  passed  to  be  engrossed  so  that  in  this 
way  all  proposed  grants  of  funds  came  under  the  supervision  of  the 
legislative  leaders  before  final  enactment. 

On  Tuesday,  April  3,  the  day  after  President  Wilson  had  de- 
livered his  war  message  to  congress,  Governor  Milliken  called 
the  Maine  legislature  together  in  joint  convention  and  delivered 
to  them  a  stirring  address  with  reference  to  the  increased  re- 
sponsibilities which  had  come  upon  them.     Specifically  he  said: 

I  urge  that  you  provide  immediate  authority  for  the  issu- 
ance of  bonds  to  the  amount  of  one  million  dollars  and  give 

1  Legislative  Record,  78th  Legislature,  pp.  1143-1144. 

2  Tax  Rate  Conference,  April  5,  1917. 

68 


GOVERNOR     MILLIKEN'S    PROGRAM 


the  governor  and  council  full  authority  to  spend  such  portion 
of  this  amount  as  may  be  necessary  for  military  purposes. 

On  that  very  same  day,  two  resolves  amounting  to  $160,000 
for  armories  in  Levviston  and  Bangor,  were  amended  in  the  house, 
on  motion  of  Mr.  Barnes  of  Houlton,  so  that  this  expenditure 
could  be  made  from  the  million  dollar  fund  which  had  been  au- 
thorized in  the  morning.  Earlier  in  the  session  the  committee  on 
military  affairs  had  acted  unfavorably  on  these  resolves  but  in 
view  of  the  war  they  had  decided  to  favor  them,  although  they 
had  not  secured  the  approval  of  the  governor.1  Both  resolves 
were  given  their  final  passage  on  April  7,  and  no  vote  was  cast 
against  them.2     They  were  approved  by  the  governor. 

On  April  4,  the  legislature  and  the  governor  and  council  took 
a  holiday,  visiting  Bangor  as  the  guests  of  the  city  on  the  occa- 
sion of  a  patriotic  demonstration.  Seven  miles  north  of  Bangor 
is  Orono  where  the  University  of  Maine  is  located,  and  on  this 
notable  occasion,  the  military  body  of  the  university  marched 
in  review  before  the  solons  of  the  state  government.  On  April 
5,  Mr.  Higgins  of  Penobscot,  chief  champion  of  the  budget  in  the 
senate,  but  resident  of  Brewer  (across  the  river  from  Bangor), 
broke  into  the  day's  routine,  as  follows : 

Mr.  President,  I  would  like  to  have  the  unanimous  consent 
of  the  senate  to  introduce  out  of  order  a  resolve,  and  in  ex- 
planation, and  prior  to  the  reading  of  it  by  the  chair,  I  desire 
to  say  that  the  members  of  this  legislature  were  so  kind  as 
to  benefit  the  eastern  part  of  Maine,  and  especially  the  city 
of  Bangor,  Maine,  with  their  presence  yesterday  in  large 
numbers.  We  did  our  best  to  look  after  you  and  take  care 
of  you  in  a  manner  befitting  the  Queen  City  of  the  east. 
We  did  our  level  best.  We  trust  that  you  are  satisfied  and 
approve  of  our  efforts.  Those  of  you  who  were  privileged  to 
sit  in  automobiles  and  watch  the  2,000  or  more  pass  by  in 
review  were  especially  impressed,  I  am  sure,  with  that  fine 
manly  body  of  young  men  representing  that  splendid  institu- 
tion, the  University  of  Maine.  We  all  gave  them  applause. 
We  all  wished  them  well,  and  we  all  bade  God-speed  to  that 
institution.  Right  nobly  have  we  supported  it  in  the  past 
and  right  nobly  will  we  continue  to  do  so.  They  have  a 
product  there  that  is  going  to  be  of  inestimable  value  to  the 
state  of  Maine,  and  one  of  which  we  are  all  proud,  and  we 
desire  at  this  time  to  show  by  our  vote  our  appreciation  of 
their  efforts  in  behalf  of  the  state  of  Maine  at  yesterday's 
program.     .     .     . 

1  Statement  of  Senator  Holt,  April,  1917. 

2  Legislative  Record,  78th  Legislature,  pp.  1209,  1255,  14S1,  1502. 

69 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


Now  I  have  this  resolution  and  I  ask  unanimous  consent  of 
the  senators  for  its  introduction.  And  I  move,  if  it  be  ac- 
cepted, that  the  rules  be  suspended  and  that  it  be  given 
its  two  several  readings  and  be  passed  at  this  time  and  sent 
to  the  house  immediately  for  concurrence. 

The  President:  The  senator  from  Penobscot,  Senator 
Higgins,  asks  that  the  rules  be  suspended  to  receive  at  the 
present  time  a  resolve  to  provide  for  the  building  of  an  armory 
at  the  university  of  Maine. 

The  motion  was  agreed  to. 

Mr.  Davies  of  Cumberland:  Mr.  President,  may  I  in- 
quire how  large  an  appropriation  the  resolve  carries? 

The  President:  Fifty  thousand  dollars. 

Mr.  Davies  :  I  move  it  lie  upon  the  table  until  this  after- 
noon. 

The  motion  was  agreed  to. 

In  the  afternoon  senator  Davies  made  no  further  objection 
and  on  April  7,  the  resolve  was  finally  passed  22  to  nothing.1 

In  the  house  the  same  resolve  (which  was  amended  to  read 
"such  sum  or  sums  as  may  be  necessary"  instead  of  " fifty  thou- 
sand dollars")  which  provided  that  the  appropriation  should  be 
derived  "in  particular"  from  the  million  dollar  fund  caused  more 
disturbance  than  in  the  senate.  The  resolve  was  introduced  by 
Mr.  Barnes  of  Houlton.  He  was  followed  by  Mr.  Allan  of  Port- 
land: 

Mr.  Speaker,  I  do  not  want  to  make  any  long  speeches,  and 
I  am  not  going  to,  but  I  simply  want  to  protest  against  tak- 
ing any  of  the  million  dollars  we  have  appropriated  for  the 
relief  of  our  soldiers  and  for  war  purposes  and  turning  them 
to  any  such  purpose  as  is  undertaken  in  that  bill.  I  there- 
fore move  its  indefinite  postponement.2 

The  resolve  wras  temporarily  postponed  until  the  following 
day  when,  after  an  executive  session  to  which  Senator  Higgins  was 
invited,  Mr.  Allan  continued  his  fight.  Mr.  Snow  of  Mars  Hill, 
who  as  chairman  on  the  part  of  the  house  of  the  committee  on  edu- 
cation had  not  dealt  very  kindly  with  other  items  in  Governor 
Milliken's  budget,  gave  some  information  with  reference  to  the 
history  of  this  proposition: 

Mr.  Speaker,  I  would  like  to  say  just  a  word.  This 
matter  came  before  the  committee  on  education  among  other 
matters  having  to  do  with  the  University  of  Maine.  We 
reported  favorably  on  some  of  the  bills  there,  but  we  did 
not  think  we  would  be  justified  in  reporting  a  resolve  for  an 

1  Legislative  Record,  pp.  1275,  1276,  1491. 

2  Ibid.,  p.  1345. 

70 


GOVERNOR     MILLIKEN'S     PROGRAM 


armory.  The  committee  were  favorable  to  an  armory  and 
we  were  conscious  of  the  fact  that  they  needed  one  there 
when  seeing  those  men  as  they  came  into  their  gymnasium 
and  went  through  their  military  movements.  This  has  got 
to  come  soon.  If  not  now,  it  will  have  to  come  two  years 
from  now  perhaps,  and  under  the  existing  circumstances  I 
favor  the  passage  of  the  resolve;  and  I  think  every  member 
of  the  committee  on  education  who  took  the  matter  into 
consideration  would  say  the  same  thing.     (Applause.) 

Mr.  Rounds  of  Portland  who  had  been  somewhat  skeptical 

about  the  matter  finally  swung  around  in  favor  of  the  measure 

after  he  had  been  assured  that  it  was  coming  out  of  the  million 

dollar  loan, — not  out  of  any  other  appropriation.     Mr.  Allan 

remained  obdurate,  however: 

The  only  point  I  object  to  is  this:  You  came  before  this 
legislature  for  a  million  dollars  to  be  raised  by  a  bond  issue 
for  war  purposes.  Now  you  are  coming  here  and  taking 
it  for  building  armories  that  cannot  be  built  for  months, 
when  almost  perhaps  within  twenty-four  hours  there  will 
be  thousands  of  soldiers  called  for  from  Maine,  and  they 
would  have  no  opportunity  of  using  it  for  any  time  so  far  as 
we  may  know.     .     .     .l 

Mr.  Allan  concluded  his  remarks  forcefully  but  apparently 
with  little  effect  for  his  motion  to  "  indefinitely  postpone"  was 
lost  on  a  viva  voce  vote. 

Thus  far  was  an  inroad  made  into  the  million  dollar  fund  when 
the  legislature  was  ready  to  adjourn. 

Revenue  Situation 

Several  days  before  the  end  of  the  session,  the  governor  and 
the  legislative  leaders  were  able  to  ascertain  practically  the  total 
amount  of  appropriations  for  1917  and  1918.  Before  the  acts 
authorizing  expenditure  were  finally  enacted,  however,  it  was 
necessary  to  provide  a  revenue  with  which  to  meet  the  expenses 
of  government. 

It  will  perhaps  be  remembered  that  the  auditor  in  his  esti- 
mates had  stated  that,  if  all  the  appropriation  requests  were 
granted,  a  state  tax  of  seven  mills  for  one  year  and  eight  mills  for 
the  other  would  be  necessary,  and  that  the  governor  had  found 
this  to  be  in  error  as  the  auditor's  estimate  for  the  1918  revenue 
was  about  $500,000  too  large,  so  that  a  tax  rate  of  eight  mills  in 
both  1917  and  1918  would  be  necessary  to  meet  the  appropriations 
requested. 


1  Legislative  Record,  pp.  1430-1433. 

71 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


In  1915  the  total  appropriations  granted  amounted  to  $5,773,- 
770.48,  the  total  expenses  to  $5,605,999.43,  and  the  income 
for  that  year  to  $5,666,482.74.  About  half  of  the  income  was 
derived  from  indirect  taxes  and  the  income  of  state  departments, 
$2,632,306.90;  the  next  largest  amount  from  the  direct  state  tax, 
$2,494,451.84,  and  most  of  the  rest  from  highway  bonds,  $498,- 
477.58.     The  tax  rate  was  five  mills. 

In  1916  the  situation  was  somewhat  similar.  Total  appro- 
priations amounted  to  $5,272,443.15,  the  total  expenses  to 
$5,254,232.31  and  the  income  to  $5,493,323.78.  Of  this  income 
$2,578,971.83  came  from  indirect  taxes  and  from  the  income  of 
state  departments,  $2,494,451.84  from  the  direct  state  tax  and 
$413,232.14  from  highway  bonds.  The  state  tax  rate  remained 
at  five  mills.1 

For  1917-8,  an  eight  mill  tax  was  to  be  necessary  if  all  the 
requested  appropriations  were  to  be  granted.  These  requests 
totalled  as  follows:  1917— $7,774,585.33;  1918— $7,167,397.91.2 
Total  about — $14,800,000.  The  governor  did  not  propose  to 
grant  them  all  and  submitted  his  recommendations  which  totalled 
much  less:  1917— $6,711,849.58;  1918— $7,106,297.09.  The  gov- 
ernor's total  recommendations  of  about  $13,800,000  (or  $1,000,000 
less  than  the  requests)  actually  represented  a  cut  of  $3,000,000 
in  the  requests,  for  in  making  out  his  appropriation  recommenda- 
tions the  governor  included  for  each  year  about  $1,000,000 
which  had  previously  been  expended  without  any  record  on  the 
books  of  the  treasurer  or  auditor.  These  items  which  had  not 
been  recorded  in  the  general  state  account  may  be  found  on  page 
34  of  the  auditor's  estimates  for  1917-8  and  in  appendix  B,  bud- 
get message,  under  the  head  "  Income  State  Institutions." 

In  making  his  estimate  of  the  revenue  for  1917  and  1918  the 
governor  also  included  the  $1,000,000  for  each  year  which  had 
been  previously  omitted  from  the  general  accounts.  His  esti- 
mates for  income  were:  1917— $6,645,350.62;  1918-$6,520,887.66. 
Total,    about   $13,165,000.     This   was   with    a  five  mill  tax. 

It  will  thus  be  seen  that  the  1917-8  figures  did  not  really  repre- 
sent much  greater  appropriations  or  revenue  than  the  1915-6 
figures.  The  governor  pointed  this  out  clearly  in  his  budget 
message,  page  iv: 


1  The  figures  in  the  two  preceding  paragraphs  are  taken  from  the  auditor's 
report  for  1915-16  with  the  exception  of  the  amounts  given  for  income  from 
indirect  taxes  and  state  departments  which  are  taken  from  appendix  B  of  the 
governor's  budget. 

■  See  note  at  end  of  chapter,  page  82. 

72 


GOVERNOR     MILLIKEN'S    PROGRAM 


In  the  estimated  expenditures  and  income,  as  prepared  and 
published  by  the  former  state  auditor,  the  total  expenditure 
for  some  institutions  is  estimated  as  the  gross  amount,  in- 
cluding income,  while  in  other  instances,  the  net  amount  is 
indicated.  In  these  tables  the  amount  recommended  for 
appropriations  is  uniformly  the  gross  amount  and  in  my  judg- 
ment the  appropriation  should  be  made  in  that  way  in  each 
instance  on  the  proper  theory  that  all  income  of  every  sort 
accruing  to  any  state  institution,  should  either  actually 
come  into  the  state  treasury,  or  be  accounted  for  to  the  state 
treasurer  and  its  expenditure  authorized  only  in  the  regular 
way. 

The  budget  recommendations  for  1917-8  did,  however,  exceed 
the  expected  revenue  by  about  $650,000  and  of  course  non- 
budget  bills  and  emergency  measures  had  to  be  taken  into  con- 
sideration. The  1915-6  administration  did  not  leave  any  real 
surplus  to  depend  upon  as  Governor  Milliken  showed  in  his 
analysis  of  appendix  "A"  to  the  budget  message. 

The  alternative  was  an  increased  state  tax  rate  or  increased 
income  from  indirect  taxes. 

The  Taxation  Committee  of  the  Legislature  organized  on  Janu- 
ary 10,  1917  and  decided  to  hold  meetings  on  Thursdays  at  2 
p.  m.,  but  it  transacted  no  business  till  the  first  of  February.  No 
good  reason  has  been  found  for  this  failure  to  get  into  action 
earlier  and  the  delay  has  been  severely  criticised. 

The  committee  soon  found  itself  heartily  out  of  sympathy  with 
the  governor.  Of  the  nine  increases  which  he  recommended  the 
committee  reported  "  ought  to  pass"  on  only  two, — those  on  taxa- 
tion of  personal  property  and  improvements  in  unorganized 
townships  and  on  parlor  cars, — to  net  a  total  revenue  in  1918  of 
$51,750.  It  voted  "  ought  not  to  pass"  on  the  corporation  fran- 
chise tax,  on  the  taxation  of  savings  deposits  in  national  banks, 
and  on  the  repeal  of  distribution  to  cities  and  towns  of  one  per 
cent  of  value  of  railroad  and  telephone  stock;  found  the  tax  on 
intangible  property  "inexpedient"  and  dropped  any  attempt  to 
force  through  the  telephone  and  telegraph  taxes  because  the  op- 
position was  known  to  be  too  strong.  At  the  last  minute  the 
committee  considered  several  new  taxes, — on  electric  railways, 
express  companies  and  insurance  companies, — but  it  was  too 
late  to  get  definite  data  on  the  situation  so  that  they  were  not 
pressed  to  enactment.1  The  climax  came  on  the  night  of  Tues- 
day, April  3,  when  an  executive  session  lasting  long  after  midnight 


1  Minutes  of  Committee  on  Taxation. 

73 


THE     GOVERNOR'S     BUDGET     IN     MAINE,     1917 


was  held  in  the  chamber  of  the  president  of  the  senate.  The 
chief  argument  centered  on  the  increase  in  the  railway  tax,  pro- 
posed by  the  governor.  This  raised  the  rate  at  the  top  of  the 
graduated  scale  only,  i.e.  affecting  only  the  railroads  having  large 
gross  receipts  from  their  business  in  the  state.  Senator  Holt, 
the  young  chairman  of  the  committee,  led  the  fight  for  the  gov- 
ernor's measure.  Senator  Merrill,  a  man  of  force  and  experi- 
ence, favored  a  measure  which  would  raise  the  rate  on  all  the 
railways,  including  the  Bangor  and  Aroostook  which  he  seemed 
especially  out  "to  knife."  By  the  end  of  the  long  session  two  of 
the  eight  members  of  the  committee  originally  present  had  de- 
parted. It  was  known  that  no  tax  at  all  would  go  through  unless 
the  committee  reported  one  measure  unanimously.  Senator 
Merrill  finally  gave  in,  at  least  he  was  understood  to  have  done  so, 
and  the  committee  broke  up,  caring  more  about  the  prospect  of  a 
few  hours'  sleep  than  about  taxes  on  railroads.  When  the  meas- 
ure came  up  in  the  senate  on  Friday,  April  6,  it  aroused  the  ire  of 
Senator  Gillin  and  it  appeared  that  Senator  Merrill  had  not  in- 
tended to  give  his  assent  to  the  measure.  After  a  debate  of  some 
length,  the  bill  was  "  indefinitely  postponed"  by  a  vote  of  21  to 
2.1  This  was  the  last  of  Governor  Milliken's  taxation  meas- 
ures. The  legislature  had  adopted  his  recommendations  in  the 
total  amount  of  a  little  over  $50,000  instead  of  about  $900,000! 
Clearly  the  state  tax  rate  could  not  remain  at  five  mills.  To 
determine  the  rate  a  conference  of  the  executive  and  legislative 
leaders  was  called,  as  was  the  custom,  and  it  met  in  the  council 
chamber  on  Thursday,  April  5,  1917  at  12.30  p.  m.  with  Governor 
Milliken  in  the  chair.  There  were  present  the  members  of  the 
council,  the  president  of  the  senate,  the  speaker  of  the  house, 
members  of  the  joint  committee  on  appropriations  and  financial 
affairs  and  of  the  house  committee  on  ways  and  means,  and  a  few 
others.'2  The  governor  explained  the  state  of  affairs  financial 
while  Budget  Director  Callahan  was  feverishly  manipulating  col- 
umns of  figures,  trying  to  determine  the  exact  amount  of  appro- 
priations outside  the  budget  which  would  probably  be  approved. 
Various  rates  from  five  and  one-half  to  six  and  one-half  mills 
were  suggested  as  possible  but  the  assembly  finally  concluded 
with  the  governor  that  six  mills  for  both  years  should  be  adopted 


1  Legislative  Record,  pp.  1379-1387. 

2  It  might  be  stated  here  that  the  house  committee  on  ways  and  means 
practically  never  meets  except  at  this  gathering  and  that  its  chief  function  is 
to  authorize  its  chairman  to  bring  in  the  bill  setting  the  rate  for  the  annual 
state  tax. 

74 


GOVERNOR     MILLIKEN'S     PROGRAM 


although  they  realized  that  this  would  be  running  close  to  the 
wind."  The  governor  was  quizzed  on  various  special  appropria- 
tions in  which  individual  members  present  were  interested  and 
made  it  clear  that  appropriation  bills  or  resolves  which  he  did 
not  approve  would  probably  not  be  enacted  into  law.1  It 
should  be  stated  here  that  the  failure  of  most  of  the  governor's 
tax  recommendations  was  not  solely  responsible  for  the  increase 
of  one  mill  in  the  tax  rate,  for  certain  emergency  measures,  es- 
pecially the  interest  on  the  one  million  dollar  loan  fund,  had 
not  been  considered  in  the  budget.  Primarily,  however,  as  the 
governor  had  prophesied  in  his  message  of  April  2,  the  failure 
of  the  legislature  to  enact  changes  in  the  indirect  tax  laws 
which  would  provide  a  substantial  increase  in  the  revenue  must 
result  in  an  increase  in  the  direct  tax  rate.  In  that  message  he 
had  clearly  put  the  responsibility  upon  its  shoulders  and  the 
Kennebec  Journal  did  not  accurately  represent  the  situation 
when  it  said: 

Governor  Milliken  had  hoped  to  have  a  five  per  cent  tax 
rate  for  each  year,  but  the  greatly  increased  expenditures 
arising  from  the  emergency  war  $1,000,000  appropriation  bill, 
the  armory  bills  and  other  unexpected  calls  are  principally 
responsible  for  the  six  per  cent  rate.2 

Lastly,  in  connection  with  the  revenue  situation,  it  should  be 
pointed  out  that  the  contest  between  indirect  and  direct  taxes  was 
largely  one  between  the  two  big  elements  in  the  legislature, — 
the  city  and  the  country.  On  fundamental  questions  such  as 
representation  in  the  legislature  and  the  apportionment  of  taxes 
these  elements  will  doubtless  always  be  in  evidence,  as  they  have 
been  from  the  organization  of  the  state.  The  question  of  the 
relative  representation  of  thickly  and  thinly  populated  districts 
was  the  one  big  question  debated  at  the  Maine  constitutional 
convention  held  in  the  meeting  house  of  the  first  parish  in  Port- 
land from  the  11th  to  the  29th  of  October,  1819  and  it  was  per- 
haps the  most  hotly  contested  fight  in  the  seventy-eighth  legis- 
lature of  1917.  The  constitution  so  provides  that  the  country 
is  certain  of  a  controlling  vote  in  the  house  and  the  city  can  usu- 
ally count  on  support  in  the  senate,  but  the  towns  and  cities  are 
in  no  sense  represented  in  the  house  according  to  their  popula- 
tion. When  anything  threatens  this  status  quo,  the  real  town 
and  country  parties  show  themselves, — Democrats  and  Repub- 


1  Kennebec  Journal,  April  6,  1017. 

2  Ibid. 


75 


THE     GOVERNOR'S     BUDGET    JN     MAINE,     1917 


licans  forget  their  designations,  and  the  good  old  idealistic  days 
of  the  convention  are  acted  over  again  without  real  "  parties," 
as  Mr.  "Whitman  of  Portland  speaking  on  the  21st  of  October, 
1819,  on  the  frequency  of  the  re-apportionment  of  representatives 
would  have  us  believe: 

These  apportionments  and  districts  should  not  be  made 
too  often — but  should  be  made  at  stated  periods.  It  should 
not  be  optional  with  a  party  in  power  to  make  them  or  not. 
Once  in  ten  years  after  the  taking  of  each  new  census,  would 
be  sufficiently  often.  It  would  not  do  to  allow  it  to  be  done 
otherwise.  It  must  not  be  made  an  engine  of  party.  We, 
to  be  sure,  see  nothing  of  party  among  us,  at  this  time; 
and  it  is  a  fortunate  circumstance,  indeed,  that  we  do  not; 
but  we  cannot  promise  ourselves  that  we  never  shall.  The 
time  may  come,  nay,  sir,  it  must  come,  when  we  shall  see 
the  same  scenes  reacted  which  have  already  disgraced  us. 
A  republic  is  said  to  be  the  nursery  of  party.  It  is  against 
these  that  we  must  guard.  When  we  place  power  in  the 
hands  of  our  legislators  we  must,  at  the  same  time,  as  much 
as  possible,  guard  against  the  abuse  of  it.  If  we  make  it 
imperative  upon  our  legislators  to  apportion  and  district 
once  in  ten  years  they  will  not  be  able  to  turn  it  so  much  to 
party  purposes.  If  they  should,  on  making  the  districts, 
have  an  eye  to  such  considerations,  they  cannot  foresee  how 
soon  it  may  turn  against  them.     .     .     } 

Final  Legislative  Action 

On  March  22,  Mr.  Nicholas  of  Eastport,  chairman  on  the  part 
of  the  house  of  the  committee  on  appropriations  and  financial 
affairs,  presented  to  that  body  "An  act  to  appropriate  moneys 
for  the  expenditures  of  government  and  for  other  purposes  for 
the  year  1917."     Thereupon  the  speaker  said: 

The  chair  will  state  to  the  house  that  this  is  from  the  com- 
mittee on  appropriations  and  has  to  do  with  moneys  that 
are  appropriated  for  carrying  on  the  government  in  its 
various  branches — a  general  appropriation  bill — and  it  is 
very  desirable  that  the  same  course  be  taken  with  this  bill 
that  was  taken  with  the  preceding  bill.2 

Then,  on  motion  by  Mr.  Barnes  of  Houlton  the  bill  was  given 
its  three  several  readings  and  was  passed  to  be  engrossed  with- 
out reference  to  a  committee. 

In  the  senate  on  the  same  day,  similar  action  was  taken  on  this 
bill. 


1  Debates  of  the  Convention  of  Delegates,  Jeremiah  Perley,  Portland,  1820. 

2  Legislative  Record,  78th  Legislature,  pp.  741,  725,  1223,  1264. 

76 


GOVERNOR     MILLIKEN'S     PROGRAM 


On  April  3,  it  was  passed  to  be  enacted  in  the  house,  by  a  vote 
of  113  to  nothing.     On  April  5,  it  passed  the  senate,  27  to  nothing. 

This  bill  which  will  be  here  designated  as  the  general  appro- 
priation act  carried  a  total  appropriation  of  $6,719,141.66  and 
in  its  final  form  was  printed  at  once.  This  was  presumably  the 
governor's  budget  bill  and  in  fact  it  carried  an  amount  of  only 
$7,292.08  in  excess  of  his  budget  recommendations,  and  changes 
were  made  in  only  fifteen  of  the  original  items.  The  only 
considerable  changes  were  an  increase  of  $10,000  for  the  "  pro- 
tection of  trees  and  shrubs,"  and  a  return  to  the  old  system  of 
appropriating  for  local  highway  repairs  and  construction,  i.e. 
by  specific  legislative  resolves.  Not  a  word,  however,  was  said 
in  either  house  as  to  the  exact  contents  of  the  bill.  As  a  matter 
of  fact,  when  it  was  first  introduced,  it  was  not  constituted  exactly 
as  it  was  when  it  received  final  passage,  for  all  the  items  which  it 
contained  in  engrossed  form  had  not  been  collected  by  clerk 
Mallett  of  the  appropriations  committee  as  early  as  March  22. L 

The  general  appropriation  act  for  1918  had  a  similar  history. 
It  was  first  introduced  in  the  senate  on  March  22,  and  passed 
its  three  readings  in  the  house  under  suspension  of  the  rules  on 
the  next  day.  It  received  final  enactment  in  the  house  on  April 
5,  and  in  the  senate  on  April  6.  A  clerical  error  in  the  engrossed 
bill  was  corrected  in  both  houses.2  The  bill  received  no  further 
consideration.  It  did  not  carry  the  emergency  clause,  which  it 
perhaps  should  be  explained,  makes  an  appropriation  available 
at  once,  instead  of  on  July  first  next,  which  would  ordinarily  be 
the  case.  The  emergency  clause  requires  a  two-thirds  vote  on 
the  passage  to  be  enacted  in  both  houses.  The  general  appro- 
priation act  for  1917  did  carry  this  clause. 

Thus  it  was  on  April  5,  two  days  before  final  adjournment,  that 
the  first  appropriation  bill  became  law,  and  one  day  later  before 
the  second  of  the  four  bills  passed  its  final  stage.  Two  bills,  the 
supplementaries,  had  therefore  to  be  introduced  and  carried 
through  the  entire  routine  on  the  final  day,  and  a  strenuous  day 
it  was,  exhibiting  the  real  human  side  of  both  executive  and  legis- 
lative officials.  As  has  been  stated  before,  the  governor  never 
believed  in  "sitting  on  a  high  horse."  He  did  not  boast  an  array  of 
flunkies  in  his  outer  offices.  Almost  daily  throughout  the  session 
he  could  be  seen  pacing  up  and  down  the  lobbies  of  the  state 


1  From  conversation  with  Clerk  Mallett. 

2  Legislative  Record,  78th  Legislature,  pp.  725,  801,  1316,  1321,  1368,  1373. 

77 


THE     GOVERNOR'S     BUDGET     IN     MAINE,     1917 


house  between  the  senate  and  house,  chatting  with  various  mem- 
bers of  the  legislature  after  the  end  of  the  session,  and  spending 
the  evening  with  the  " boys"  at  the  Augusta  House.  But  an 
incident  on  that  last  day  perhaps  showed  better  than  any  other 
the  real  spirit  of  comradeship  which  existed  between  these  two 
elements  of  the  government,  the  legislative  and  the  executive. 
As  Saturday  wore  on  to  evening  and  well  into  Sunday  morning 
(but  not  according  to  the  senate  and  house  clocks)  recesses  of 
the  legislative  bodies  became  more  frequent.  Legislators  turned 
into  school  boys,  and  the  governor  was  not  forgotten.  He  had 
vetoed  a  bill  introduced  by  Mr.  Buzzell  of  Belfast  which  pro- 
vided for  a  reorganization  of  the  judicial  system  so  that  the  then 
judge  of  the  municipal  court  in  Belfast  would  have  been  removed 
from  office.  Mr.  Buzzell's  attempt  to  induce  the  house  to  pass 
the  bill  over  the  veto  was  unsuccessful.  This  incident  had  ap- 
parently inspired  one  of  poetic  instincts  in  the  house  for  late  on 
that  Saturday  evening  a  considerable  group  of  legislators  invaded 
the  corridor  outside  the  governor's  chambers,  serenading  him  to 
the  tune  of  "John  Brown's  Body": 

Buzzell  of  Belfast  tried  to  remove  the  judge  (three  times) 
But  the  governor  he  said  "No" 

Buzzell  got  the  house  and  Buzzell  got  the  senate  (twice) 
But  when  it  came  to  the  governor  Buzzell  wasn't  in  it 
And  now  he  goes  marching  home. 

This  amused  the  governor  immensely,  so  much  so  in  fact  that 
he  rushed  out  into  the  lobby  and  joined  with  his  colleagues  in  an 
encore. 

Both  supplementary  appropriation  bills,  for  1917  and  for  1918, 
made  their  initial  appearance  on  the  afternoon  of  Saturday,  April 
7  and  received  their  final  passage  late  that  evening.  They  excited 
no  comment  except  that  on  the  appearance  of  the  1917  measure 
in  the  senate,  Mr.  Higgins  of  Penobscot  moved  to  pass  it  under 
suspension  of  the  rules  and  the  following  dialogue  took  place: 

Mr.  Merrill  of  Somerset:  Mr.  President,  I  would  ask 
to  have  the  bill  read.     I  would  like  to  know  what  it  is. 

Mr.  Higgins:  Mr.  President,  I  may  say  for  the  informa- 
tion of  the  senator  that  the  appropriation  bills  for  1917  and 
1918  came  up  as  matters  in  the  budget.  These  bills  cover 
all  matters  that  have  passed  the  legislature,  resolves  and 
acts  carrying  money,  since  the  introduction  of  the  first  appro- 
priation bills.  This  is  the  usual  supplementary  bill  that 
goes  through  each  session  of  the  legislature. 

Mr.  Merrill:  Mr.  President,  that  is  satisfactory.1 

1  Legislative  Record,  78th  Legislature,  pp.  1481,  1492,  1508,  1511,  1513. 

78 


GOVERNOR     MILLIKEN'S    PROGRAM 


As  a  matter  of  fact  it  is  perhaps  surprising  that  more  such  ques- 
tions were  not  asked  about  these  appropriation  bills,  for  there 
were  many  members  of  both  houses  who  did  not  even  know  such 
a  thing  as  an  appropriation  act  existed.  But  especially  during 
the  early  hours  of  Sunday  morning  no  one  was  in  a  mood  to  care 
very  much  about  a  few  thousand  dollars,  and  there  was  a  gentle- 
man's agreement  generally  endorsed  not  to  obstruct  the  ordinary 
procedure.  Such  obstruction  might  have  been  very  successful, 
for  after  the  clocks  had  been  turned  back  and  the  mock  trial  of  a 
German  spy  had  been  concluded  in  the  hall  of  the  house,  the  va- 
cant seats  in  both  houses  were  many.  Any  question  about  a 
quorum  if  insisted  upon,  would  have  forced  an  adjournment  into 
the  next  week,  for  each  house  had  only  about  a  third  of  its  mem- 
bers present, — 58  out  of  151  in  the  house  and  13  out  of  31  in  the 
senate.  This  loyal  band  cheerfully  took  its  medicine,  which  con- 
sisted in  waiting  around  for  the  printer  to  get  the  bills  engrossed 
for  final  passage,  and,  after  fighting  off  the  attempt  of  a  minority 
to  break  the  gentleman's  agreement  about  a  quorum,  adjourned 
sine  die  at  11.26  p.  m.,  Saturday  night  by  the  house  clock  but  at 
3.19  a.  m.  Sunday  by  the  true  time.1 

These  supplementary  appropriation  bills  were  supposed  to 
include  all  resolves  outside  of  the  budget  which  had  been  finally 
passed  in  the  two  houses  and  had  received  the  approval  of  the 
governor.  The  1917  bill  carried  a  total  of  $214,923.54  and  the 
1918  bill,  $123,016.00.  In  addition  several  resolves  received  the 
approval  of  the  governor  but  were  not  incorporated  in  either  of 
the  appropriation  acts.  Mr.  George  W.  Leadbetter  stated  that 
some  of  these  were  probably  omitted  "for  the  reason  that  they 
provided  for  the  payment  of  bills  contracted  or  liabilities  in- 
curred prior  to  this  year  and  could  properly  be  paid  from  the 
state  contingent  fund,"  and  that  the  resolve  providing  for  the 
screening  of  lakes  and  ponds  and  carrying  over  $5,000  in  17  items 
"was  not  included  in  the  appropriation  bill  for  the  reason  that  it 
provides  that  the  amounts  shall  be  paid  out  of  license  fees  col- 
lected from  non-resident  fishermen."2  Mr.  Leadbetter  recog- 
nized, however  that,  these  omissions  might  have  been  due  to  an 
oversight  and  this  would  seem  to  be  the  proper  explanation,  for 
payments  from  the  state  contingent  fund  do  not  need  the  sanc- 
tion of  a  resolve  and  such  action  with  reference  to  the  resolve 
for  screening  lakes  and  ponds  as  is  suggested  by  Mr.  Leadbetter 

1  Kennebec  Journal,  April  9,  1917. 

2  Letter  from  Mr.  George  W.  Leadbetter  dated  May  1,  1917. 

79 


THE     GOVERNOR'S     BUDGET     IN     MAINE,     1917 


would  have  been  directly  contrary  to  the  policy  announced  by 

Governor  Milliken  in  his  budget  message  (page  iv) : 

.  .  .  in  my  judgment  the  appropriation  should  be 
made  ...  on  the  proper  theory  that  all  income  of 
every  sort  accruing  to  any  state  institution,  should  either 
actually  come  into  the  state  treasury,  or  be  accounted  for 
to  the  state  treasurer  and  its  expenditure  authorized  only 
in  the  regular  way. 

It  may  also  be  noted  that  a  revenue  item,  "  Inland  fish  and 
game,"  is  included  in  appendix  B  of  the  governor's  budget,  and 
that  that  item  which  presumably  includes  all  the  revenue  of  that 
department,  forms  a  part  of  the  total  amount  of  revenue  with 
which  the  governor  proposed  to  pay  the  budget  appropriations. 

With  reference  to  payments  from  the  state  contingent  fund 
alluded  to  above,  it  may  be  stated  that  the  governor  and  his  legis- 
lative leaders  took  care  to  "kill"  some  resolves,  stating  that  it 
was  unnecessary  to  pass  them  as  the  payments  which  they  con- 
templated would  be  made  out  of  the  contingent  fund.1 

Of  the  $215,000  in  the  1917  supplementary  act,  approximately 
$95,000  was  appropriated  to  emergency  measures  which  were  not 
contemplated  when  the  budget  was  made  out,  $50,000  was  put 
into  the  state  contingent  fund  and  less  than  $25,000  was  appor- 
tioned to  items  for  which  requests  had  been  filed  with  the  auditor 
but  which  had  been  refused  a  place  in  the  budget.  Of  the  $125,000 
in  the  1918  act,  $40,000  went  for  emergency  measures  and,  $15,000 
for  requests  which  had  been  refused  a  place  in  the  budget. 

In  addition  to  the  appropriations  carried  in  the  supplementary 
acts,  as  has  already  been  stated,  there  were  resolves  carrying 
money  which  were  not  incorporated  in  any  of  the  acts.  Thirty- 
one  of  these  carried  definite  sums  and  were  signed  by  the  governor. 
Five  of  them,  totaling  only  $598.24,  provided  for  payment  of 
liabilities  contracted  prior  to  1917  and  are  explained  by  Mr. 
Leadbetter's  letter  (resolve  chapters  No.  2,  14,  15,  20,  25). 
Twenty-one  provided  for  the  apportionment  of  funds  already 
appropriated  by  act  of  the  legislature — pay  roll  of  the  house  and 
senate,  reimbursement  of  towns  for  the  support  of  state  paupers, 
pensions,  etc.  (resolve  chapters  No.  5,  6,  16,  24,  31-33,  56,  61,  94- 
96,  104,  107,  110,  112,  113,  115,  117-119).  One  involving  $168 
(resolve  chapter  No.  22)  is  yet  unexplained  and  was  apparently 
inserted  by  error.  Another  (resolve  chapter  No.  99)  provided  an 
appropriation  of  $500  only  in  case  an  equal  sum  was  raised  outside 


1  Legislative  Record,  78th  Legislature,  p.  1020. 

80 


GOVERNOR     MI LLI KEN'S     PROGRAM 


the  legislature,  so  that  its  use  was  uncertain,  and  possibly  for  this 
reason  it  was  omitted  from  the  acts.  Two  others  (resolve  chap- 
ters No.  100,  105),  for  the  armories  at  Bangor  and  Lewiston, 
stipulated  that  the  $160,000  involved  should  preferably  be  taken 
from  the  million  dollar  war  fund.  They  would  not  therefore 
have  burdened  the  main  state  treasury  directly  and  were  omitted 
from  the  acts.1  The  thirty-first  was  that  for  screening  certain 
lakes  and  ponds.  As  already  stated  it  was  apparently  omitted 
from  the  supplementary  act  by  accident. 

One  other  item  perhaps  deserves  mention  here.  It  provided 
$15,000  for  the  erection  of  a  suitable  memorial  to  commemorate 
the  services  of  General  Hiram  G.  Berry  in  the  Civil  War.  It 
passed  its  several  readings  in  both  houses  and  was  laid  upon  the 
desk  of  the  president  of  the  senate  in  engrossed  form  sometime 
after  3.00  a.  m.,  Sunday  morning,  April  8.  The  governor  had 
been  watching  it,  however,  and  so  the  senate  Legislative  Record 
.(p.  1493)  reads: 

Finally  Passed 

.  .  .  Resolve  for  the  memorial  in  favor  of  General 
Hiram  G.  Berry  (indefinitely  postponed  on  motion  of  Mr. 
Higgins  of  Penobscot).     .     .     . 

The  last  action  taken  by  the  House  on  any  bill  or  resolve  was 
with  reference  to  this  measure.  On  motion  of  Mr.  Packard  of 
Rockland,  the  house  voted  to  concur  with  the  senate  in  the  in- 
definite postponement  of  the  resolve  (p.  1516). 

The  appropriations  actually  voted  by  the  78th  Legislature  in 
concrete  sums  follow: 

1917  1918 

First  appropriation  act  (budget) . .  .  $6,719,141 .  66  $7,114,304 .  76 

Supplementary  act 214,923 .  54        123,016 .  00 

Resolves  (unincorporated) — pond 

screening,  etc 5,779 .32   


$6,939,844.52  $7,237,320.76 

(This  does  not  include  appropriations  from  the  million  dollar 
war  fund,  the  contingent  appropriation  of  $500  noted  above,  or 
the  resolves  for  the  payment  of  previous  liabilities.) 

Thus  ends  the  history  of  the  action  upon  the  governor's  1917-8 
financial  program  by  the  legislature,  but  the  governor  did  not 
finish  his  part  as  a  legislator,  until  two  days  later: 


1  Acts  and  Resolves  of  the  78th  Legislature,  State  of  Maine,  Portland,  1917. 
7  81 


THE     GOVERNOR'S     BUDGET    JN     MAINE,     1917 


Considerable  surprise  was  expressed  in  various  quarters 
when  it  became  known  that  Governor  Milliken  failed  to  sign 
during  the  closing  hours  of  the  78th  legislature  which  ad- 
journed early  Sunday  morning  the  resolve  appropriating 
$50,000  for  an  armory  at  the  University  of  Maine.  Under 
the  constitution  this  resolve  will  not  become  a  law  until 
three  days  after  the  next  meeting  of  the  legislature. 

The  resolve  in  favor  of  the  armory  at  the  University  of 
Maine  was  introduced  in  the  last  days  of  the  session  when 
the  war  news  was  at  its  height  and  no  one  opposed  it  during 
its  passage  with  the  exception  of  representative  George  H. 
Allan  of  Portland.  ...  It  is  now  quite  generally 
thought  that  Mr.  Allan  may  have  had  an  additional  motive 
for  opposition,  that  the  measure  was  unsatisfactory  to  the 
Governor.1 

The  governor  had  shown  himself  a  statesman. 

One  other  resolve  also  was  not  signed.  It  carried  $237.05  and 
was  in  favor  of  Fred  R.  Smith  of  Pittsfield,  for  expenses  alleged 
to  have  been  incurred  as  a  member  of  the  hospital  trustees  in  in- 
vestigating conditions  at  the  Augusta  state  hospital  in  1913.2 


1  Kennebec  Journal,  April  11,  1917. 

2  House  Document  No.  610;  letter  from  L.  M.  Hart,  private  secretary  to 
the  governor,  dated  Nov.  12,  1917. 

Note. — The  figures  for  "Total  Appropriations  Requested"  as  given  on  page 
35  do  not  agree  with  the  figures  given  on  page  56  and  page  72.  The  figures  on 
page  35  are  those  given  in  the  Auditor's  Estimate  itself;  the  figures  on  page  56 
and  page  72  are  those  given  in  the  governor's  budget.  Neither  represent  the 
situation  accurately  as  each  omits  items  which  should  be  included.  The  cor- 
rect total  is  as  follows: 

1917  1918 

$7,849,662.40  $7,242,397.91 

If  these  figures  were  used  on  page  72,  they  would  show  that  the  reductions 
made  by  the  governor's  recommendations  were  $300,000  greater. 


82 


CHAPTER  V 
CONCLUSIONS 


The  Formation  and  Form,  of  the  Financial  Plan 

One  thing  is  clear,  and  that  is,  if  the  budget  is  to  be  formed  in- 
telligently and  scientifically  under  the  system  inaugurated  by 
Governor  Milliken,  the  executive  must  be  provided  with  detailed 
estimates  by  heads  of  departments  and  institutions.  These  must 
be  ready  for  the  governor  when  he  takes  office.  In  addition  he 
must  be  provided  with  a  staff  sufficient  to  make  any  investiga- 
tions he  may  deem  necessary. 

At  present  the  estimates  are  treated  in  wholesale  fashion,  both 
by  the  departments  and  by  the  institutions.  They  are  not 
prepared  in  sufficient  detail  and  they  are  not  analyzed  in  any 
scientific  manner.  Only  in  a  very  few  cases  are  reasons  given  for 
requests  and  where  these  are  given  on  the  estimate  blanks  they 
are  not  copied  into  the  compilation  made  for  the  governor  and  the 
legislature.  Conditions  in  1916-7  were  apparently  even  more 
unsatisfactory  than  in  1914-5,  to  judge  by  a  letter  from  the  super- 
visor of  accounts  in  the  auditor's  office.     It  reads: 

The  auditor's  estimate  was  made  up  in  a  very  short  time 
and,  of  course,  there  possibly  might  be  a  discrepancy,  under- 
standing at  the  time  that  the  incoming  legislature  was  not 
going  to  use  this  estimate  which  really  was  only  a  case  of 
fulfilling  the  auditor's  law.1 

(This  was  in  reply  to  a  request  for  an  explanation  of  differ- 
ences between  figures  which  should  apparently  be  the  same,  but 
which  were  given  differently  in  the  estimates  and  in  the  budget.) 

The  Maine  appropriation  estimates  are  divided  into  about 
fifty  sections,  apparently  formed  on  a  basis  of  administrative 
control  over  expenditure,  or  of  function.  These  sections  are 
arranged  alphabetically,  under  three  main  heads:  1.  Depart- 
ments, 2.  State  Institutions,  3.  State-Aid  Institutions  (of  a 
charitable  or  correctional  type).  There  is  no  classification  by 
objects  of  expenditure,  by  electoral  or  executive  control  or  by 
type  of  service  to  be  rendered.  No  data  are  submitted  to  support 
the  estimates  or  the  statement  of  expenditure.     Although  the 


1  Letter  from  Walter  B.  Fraser,  dated  October  30,  1917. 

83 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


expenditures  for  1914  and  1915  were  given  in  the  1917-8  estimates, 
the  auditor's  report  for  1915-6  was  not  given  to  the  legislature 
until  February  27,  1917  and  was  not  printed  for  distribution  until 
April  6,  1917,  the  day  before  the  adjournment  of  the  legislature.1 
If  a  record  of  actual  expenditures  were  to  be  used  therefore  in  the 
preparation  of  the  1917-8  appropriations,  it  would  have  been 
necessary  to  have  referred  to  the  auditor's  account  for  1913-4, 
although  of  course  the  1915-6  records  could  have  been  found  by 
delving  into  the  auditor's  office. 

It  is  suggested  therefore  that  the  estimates  would  be  of  more 
value  if  the  present  law  were  observed,  i.e.  if  estimates  were  really 
required  to  be  submitted  in  detail,  and  if  reasons  for  requests  were 
also  required  and  were  also  printed  with  such  requests.  One  item 
for  $100,000  for  1917,  found  on  page  3  of  the  1917-8  estimates 
and  entitled,  "  Operation  of  fish  hatcheries  and  feeding  stations, 
wardens'  salaries  and  expenses  of  the  department"  (Inland  fish 
and  game  commission)  is  in  point.  Expenditure  records  should 
of  course  be  given  in  detail  in  the  same  manner  as  the  requests. 

It  is  also  submitted  that  the  estimates  should  be  classified  by 
objects  of  expenditure,  i.e.  things  to  be  bought;  by  controlling 
functions,  i.e.  legislative,  administrative,  executive,  etc.;  and  also 
by  public  service  functions,  i.e.  administration  of  justice,  pro- 
tection of  persons  and  property,  etc.  For  additional  suggestions 
in  this  direction,  reference  should  be  made  to  "  A  suggested  budget 
procedure  for  Illinois"  by  Frederick  A.  Cleveland  (in  typewritten 
form  only)  and  to  the  British  "Book  of  Estimates"  the  form  of 
which  is  clearly  set  forth  and  illustrated  in  Chapter  IV  of  The 
Financial  Administration  of  Great  Britain  by  Willoughby,  Will- 
oughby  and  Lindsay,  previously  cited  in  this  report.  The  1917-8 
estimates  were  not  totalled  by  sections  or  by  main  heads,  and 
the  grand  final  total  in  the  book  of  estimates  did  not  agree  with 
the  total  for  the  same  items  in  the  governor's  budget.  A  more 
satisfactory  summary  is  certainly  needed. 

Several  changes  were  made  by  the  1917  legislature  in  the  statute 
law  governing  the  filing  and  compilation  of  estimates.  The  1915 
laws  did  not  require  the  estimates  to  be  filed  with  the  auditor 
until  the  first  Monday  of  December  and  stipulated  that  he  should 
prepare  some  of  them  for  submission  to  the  legislature  on  the  fif- 
teenth of  January  and  others  for  submission  to  the  governor  and 
legislature  on  the  first  day  of  the  legislative  session.     The  auditor 


1  Legislative  Record,  78th  Legislature,  p.  349. 

84 


CONCLUSIONS 


in  his  letter  submitting  the  1917-8  estimates  and  also  in  his  1915-6 
report  claimed  that  these  provisions  gave  him  insufficient  time  in 
which  to  prepare  the  compilation  and  recommended  that  the  esti- 
mates be  submitted  to  him  on  November  1,  the  date  set  by  the 
original  statute  on  this  subject.  Sections  92,  93  and  94,  chapter 
2  of  the  revised  statutes  of  1916  were  revised  so  that  hereafter  all 
the  estimates  are  to  be  submitted  to  the  auditor  by  the  fifteenth 
of  November  and  the  entire  compilation  is  to  be  submitted  to  the 
legislature  and  the  governor  on  the  first  day  of  the  biennial 
session.1  It  should  be  possible  with  the  increased  time  thus 
afforded,  for  the  auditor's  office  to  make  a  careful  compilation  of 
the  estimates  so  that  errors  in  that  document  could  not  be  charged 
to  midnight  oil.  Re-classification  of  items  in  the  estimates  upon 
bases  of  object  of  expenditure  and  function  would  also  seem  to  be 
probable  in  the  near  future,  at  least  if  Governor  Milliken  is  re- 
elected.    He  has  expressed  himself  in  favor  of  such  action.2 

Thus  far  only  did  Governor  Milliken's  regime  affect  the  prep- 
aration of  the  estimates.  The  hearings  given  to  the  public  and 
to  state  officials,  however,  were  considerably  affected  by  the 
new  arrangements.  It  seems  to  be  the  general  opinion  that  the 
joint  budget  hearings  received  more  publicity  and  more  careful 
attention  than  did  committee  hearings  under  the  old  system, 
although  this  opinion  was  not  held  by  all.  Clerk  Mallett  of  the 
appropriations  committee  saw  little  change.  Complaint  wras 
made  in  certain  cases  that  notifications  were  not  given  out  in 
time  to  allow  those  making  requests  to  appear  at  the  hearings 
and  it  is  certainly  true  that  no  time  was  lost  in  putting  through 
these  hearings  to  their  conclusion.  It  is  clear  that  the  $8,000 
spent  for  legislative  hearings  in  1913  would  not  be  expended 
under  Governor  Milliken's  plan,  certainly  not  if  he  were  in  the 
chair.  As  a  matter  of  record  and  to  aid  legislative  committees 
or  others  making  a  subsequent  investigation,  it  is  strongly  urged 
that  stenographic  reports  be  made  of  the  budget  hearings.  These 
should  be  available  for  general  publication.  Some  of  the  appro- 
priation questions  which  would  ordinarily  be  fought  out  on  the 
floor  of  the  legislature  will  be  settled  at  the  hearings  under  this 
new  system.     The  public  should  be  fully  informed. 

To  form  his  budget  the  governor  must  have  more  than  public 
hearings.  He  must  have  an  intelligent,  well-equipped  staff. 
The  laws  of  the  state  of  Maine  do  not  provide  for  such  officials 

1  Acts  and  Resolves  of  the  78th  Legislature,  Portland,  1917,  pp.  273-274. 

2  Conversation  with  Governor  Milliken,  New  York,  December  10,  1917. 

85 


THE     GOVERNOR'S     BUDGET     IN     MAINE,     1917 


but  the  governor  in  1917  provided  for  a  budget  director  out  of  the 
contingent  fund.  This  official  made  certain  investigations  at 
the  request  of  the  governor  but  the  detailed  results  of  his  work 
were  not  put  at  the  disposal  of  the  legislature  or  of  the  public 
except  as  they  were  incorporated  in  the  budget.  It  would  seem 
that  all  these  data  should  be  available  for  those  concerned  with  the 
voting  of  appropriations.  Mr.  Callahan  was  appointed  to  hold 
office  only  until  the  end  of  the  legislative  session.  He  stated 
that  he  thought  a  permanent  budget  director  should  be  provided 
for  but  that  he  did  not  want  the  office. 

The  budget  itself  as  has  been  conceded  on  practically  all  sides 
marked  an  epoch  in  the  history  of  the  financial  administration 
of  the  state  of  Maine.  Never  before  had  the  financial  situation 
of  the  state  been  subject  to  such  careful  investigation  by  the 
executive.  Never  before  had  he  delved  into  the  records  of  the 
treasurer  and  of  the  auditor  to  prepare  a  clear,  concise  exposition 
of  the  revenue  and  appropriation  needs  of  the  government.  As 
has  already  been  pointed  out,  the  first  of  the  "budget "  appendices 
shows  the  financial  condition  of  the  state  as  of  December  31, 
1916.  This  record  of  assets  and  liabilities  showed  an  apparent 
surplus  of  $106,614.68,  under  the  title  of  " state  contingent  fund" 
but  the  governor  pointed  out  in  his  message  that  "  against  it  must 
be  charged  the  excess  required  beyond  the  appropriation  for  the 
completion  of  any  work  authorized  by  the  last  legislature/'  and 
that  such  excess  would  go  a  long  way  toward  eating  up  the 
entire  fund.1  Appendix  "B"  showed  the  normal  state  income 
under  existing  law  and  the  result  of  adopting  certain  proposed 
changes  in  the  taxation  laws  to  provide  increased  revenue.  Ap- 
pendix "C"  was  a  statement  of  the  appropriations  made  for 
1915  and  1916,  those  requested  for  1917  and  1918  and  those 
recommended  for  1917  and  1918.  The  form  and  arrangement 
of  this  statement  was  similar  to  that  used  by  the  auditor  in 
presenting  his  estimates.  The  same  fifty  sub-sections  were  used. 
It  is  suggested  that  even  if  this  plan  is  to  be  used,  columns  should 
be  added  to  show  the  estimates  and  actual  expenditures  made  for 
the  two  years  just  passed.  Under  the  ideal  budget  procedure 
perhaps  the  legislator  should  be  referred  to  the  "book  of  esti- 
mates" for  such  information  with  reference  to  the  actual  expendi- 
tures but  until  the  estimates  approach  more  nearly  the  ideal, 

1  This  is  the  third  "contingent  fund"  noted  in  this  report.  Two  others  were 
explained  on  pages  28,  30.  The  third  simply  designates  the  surplus  of  revenue 
over  expenditure  to  the  credit  of  the  state  on  December  31,  1916. 

86 


CONCLUSIONS 


the  addition  of  these  columns  should  prove  of  value  to  the  mem- 
bers of  the  voting  bodies.  The  same  criticism  made  of  the  esti- 
mates, that  many  of  the  items  are  not  given  in  sufficient  detail, 
would  also  be  pertinent  here,  for  the  governor  has  not  itemized 
his  budget  any  more  than  has  the  auditor  his  estimates.  As  a 
matter  of  fact  the  budget  appendix  "C"  is  nothing  more  than  the 
auditor's  estimates  except  that  expenditures  for  1914  and  1915  are 
replaced  by  the  governor's  recommendations  for  1917  and  1918. 
Appendix  "D"  of  the  budget  was  entitled  "cost  of  maintaining 
state  charitable  and  reformatory  institutions  for  1915  and  1916 
compared  with  appropriations  recommended  for  1917  and  1918." 
From  the  standpoint  of  scientific  budget  procedure  it  was  the 
most  interesting  and  significant  part  of  the  entire  document. 
For  each  of  nine  state  institutions  it  gave  the  following  data, 
actual  for  1915  and  1916,  estimated  for  1917  and  1918:  population, 
personal  services,  food  supplies,  clothing,  repairs  and  equipment, 
general  expenses,  and  total  maintenance.  The  1917  and  1918 
figures  for  " total  maintenance"  were  those  recommended  by  the 
governor  in  appendix"  C"  as  the  proper  amounts  to  be  voted  by 
the  legislature  as  appropriations  for  the  institutions  concerned. 
If  a  similar  table  had  been  prepared  by  every  government  depart- 
ment and  institution  and  by  every  state-aided  institution,  it  might 
be  said  that  the  Maine  budget  was  rapidly  approaching  that 
state  which  the  professional  budget-maker  would  term  perfection. 
Unfortunately  the  head  of  no  other  administrative  division  of  the 
government  seems  to  have  had  such  an  interest  in  clear-minded 
financial  procedure  as  did  Secretary  Bagley  of  the  state  board  of 
charities  and  corrections  who  compiled  appendix  "D."  It 
should  also  be  mentioned  that,  in  addition  to  the  compilation  of 
appendix  "D,"  Secretary  Bagley  in  his  report  to  the  governor 
dated  December  29,  1916,  laid  before  that  official  a  statement 
which  would  also  serve  as  a  valuable  model  for  "estimate" 
reports  to  be  made  by  other  department  heads  to  their  chief 
executive.  This  document  of  43  pages,  sets  forth  the  principles 
which  Secretary  Bagley  believes  should  govern  the  legislature 
in  making  appropriations  for  state  and  state-aided  institutions  in 
his  field,  and  contains  14  specific  tables  showing  how  he  would 
apply  those  principles  to  the  particular  institutions  concerned. 
Table  No.  1,  entitled  "maintenance  of  state  institutions"  shows 
the  actual  and  estimated  maintenance  charges  for  1915, 1916, 1917, 
and  1918.  Tables  2,  3,  and  4  show  the  percentage  of  increase  of 
the  1917-8  figures  over  those  for  1915-6  with  reference  to  popula- 

87 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


tion,  gross  cost  of  maintenance,  salaries,  supplies  and  expenses; 
and  percentage  figures  for  the  same  items  after  increase  of  popu- 
lation had  been  taken  into  account.  Table  No.  5  shows  the 
actual  and  estimated  charges  for  1915-8  for  institutional  trustees. 
Table  No.  6  gives  a  list  of  40  items,  "  special  appropriations  re- 
quested for  state  institutions."  They  are  listed  in  the  order  in 
which  they  are  recommended  for  adoption.  Tables  No.  7-12 
give  a  list  of  state-aided  institutions  and  show  for  each  its  deficit 
for  the  prior  two-year  period,  the  appropriation  for  that  period, 
and  the  request  and  the  recommendation  for  the  1917-8  period. 
Tables  No.  13  and  14  summarize  the  others.  The  report  closes 
with  a  typical  form  to  be  used  by  the  legislature  for  all  resolves 
in  favor  of  charitable  and  correctional  institutions. 

Secretary  Bagley's  report  is  rather  in  the  nature  of  supporting 
data  for  a  "book  of  estimates"  than  for  a  " budget, "  if  the  line 
between  the  two  documents  is  taken  to  be  that  defined  by 
Frederick  A.  Cleveland  where  he  states: 

The  "book  of  estimates"  is  a  compendium  of  detailed  in- 
formation sent  to  the  representative  body  to  enable  its  mem- 
bers to  review  the  conclusions  of  spending  officers  as  to  what 
their  future  needs  will  be  [while]  the  "budget"  is  a  very  sim- 
ple statement  made  by  the  chief  executive  or  other  authority 
charged  with  the  preparation  of  a  plan  of  financing  that  sets 
forth  the  totality  of  funds  required  for  carrying  on  the  work 
which  is  described  and  outlined  in  detail  in  the  "book  of 
estimates,"  together  with  an  estimate  of  revenue  and  other 
resources  available  to  meet  the  proposed  expenditures.1 

But  Secretary  Bagley's  report  is  mentioned  here  because  its 
treatment  of  finance  is  of  that  scientific  type  which  Dr.  Cleveland 
would  commend, — at  least  in  comparison  with  the  attention  paid 
to  proper  estimate  and  budget  procedure  by  many  a  state  admin- 
istrative official  or  executive. 

Dr.  Cleveland's  suggested  budget  for  Illinois  is  summarized  in 
seven  financial  statements  supplementary  to  the  budget  state- 
ment of  the  governor.  It  may  be  of  interest  to  note  that  Governor 
Milliken's  budget  statements  include  none  which  in  any  way 
resembles  any  of  the  seven  recommended  for  Illinois.  Those 
suggested  by  Dr.  Cleveland  in  this,  his  latest  document  on  state 
budgets,  are  as  follows: 

Supplementary  statement  I — Summary  showing  the 
several  "elements  of  cost"  of  the  government,  the  "character 


1 A  suggested  budget  procedure  for  the  state  of  Illinois,  p.  39. 

88 


CONCLUSIONS 


of  expenses"  and  " methods  of  financing"  them  for  the  fiscal 
years  1917  and  1918. 

Supplementary  statement  II — Comparative  summary  of 
the  actual  appropriation  for  1915-16  and  amounts  of  appro- 
priation recommended  by  the  governor  for  1917-18  (classi- 
fied by  organization  units,  objects  of  expenditure,  character 
and  funds). 

Supplementary  statement  III — Comparative  summary  of 
revenues  and  other  resources  accruing  during  the  years  1915- 
16  and  the  estimated  revenues  and  resources  accruing  during 
the  years  1917  and  1918,  classified  by  funds. 

Supplementary  statement  IV — Comparative  summary 
showing  the  condition  of  the  several  funds  of  the  state  from 
which  appropriations  may  be  made. 

Supplementary  statement  V — Comparative  summary  of 
expenses  and  revenues  showing  the  actual  cost  of  services 
rendered  and  revenues  provided  for  1915  and  the  estimated 
cost  of  services  to  be  rendered  and  revenues  to  be  provided 
for  1916,  1917  and  1918. 

Supplementary  statement  VI — Comparative  summary  of 
debits  and  credits  to  the  current  surplus  account. 

Supplementary  statement  VII — Comparative  balance  sheet 
showing  assets  and  liabilities  for  the  state  of  Illinois  as  of 
the  several  dates  indicated. 

Legislative  Action  and  Procedure 

Six  propositions  with  reference  to  the  budget  were  presented  to 
the  legislature  by  Governor  Milliken  in  his  annual  message  and  in 
his  budget  message.  Consideration  will  be  given  here  to  the  way 
in  which  they  were  acted  upon  by  the  legislature.  First,  he  pro- 
posed that  the  executive  be  allowed  to  set  the  limits  for  the  total 
of  appropriation  measures,  and  that  the  legislature  confine  its 
activities  to  the  size  of  particular  appropriations.  As  to  the  total 
appropriations  recommended  by  the  governor  and  the  total 
amounts  passed  by  the  legislature  the  figures  will  give  answer: 

1917  1918 

Recommended  by  governor $6,711,849.58    $7,106,297.09 

Passed  by  legislature 6,939,844 .  52      7,237,320 .  76 


Amount  in  excess  of  budget $227,994 .  94        $131,023 .  67 

This  represents  an  increase  over  the  budget  of  a  little  over  3 
per  cent  for  1917  and  of  almost  2  per  cent  in  1918,  so  that  Mr. 
Lester  M.  Hart,  private  secretary  to  the  governor,  has  well  said: 

The  difference  between  the  actual  bills  and  the  sums  recom- 
mended in  the  budget  message  are  so  trivial  as  to  make  it 

89 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


apparent  that  the  recommendations  of   the   budget   were 
carried  out  in  these  bills  almost  to  a  dollar.1 

As  will  be  seen  by  reference  to  the  summary  of  appropriation 
measures  (page  81),  the  amount  of  the  supplementary  acts  in 
1917  and  1918  practically  equals  the  amount  of  appropriations 
passed  in  excess  of  the  budget  recommendations.  Reference  to 
that  section  of  this  report  will  also  show  that  a  substantial  part 
of  the  supplementary  appropriations  were  for  emergency  purposes. 

Second,  Governor  Milliken  suggested  a  series  of  joint  hearings 
on  appropriations  before  the  governor,  council  and  appropriate 
legislative  committees.  How  these  were  held,  with  what  expedi- 
tion, and  with  what  satisfaction  has  already  been  set  forth. 
Most  of  the  administrative  and  legislative  officials  seemed  satis- 
fied that  the  " budget  hearings"  had  at  least  done  no  harm. 
Representative  Farrington  of  Augusta,  however,  majority  leader 
of  the  house  but  out  of  sympathy  with  Governor  Milliken's  pro- 
gram, held  that  these  hearings  delayed  the  legislative  session 
two  weeks.  Most  of  those  interested  in  improved  procedure  with 
reference  to  legislation  on  financial  measures  did  not  hesitate  to 
endorse  this  system  of  hearings  most  heartily. 

Third,  he  requested  that  the  legislature  should  not  pass  acts 
and  resolves  carrying  money  until  the  governor  had  submitted  his 
budget  and  that  they  should  give  that  budget  their  most  careful 
consideration.  In  this  the  legislature  gave  the  governor  "  gilt- 
edge"  support.  The  budget  was  presented  February  14.  The 
first  resolve  carrying  money  did  not  become  law  until  February 
16  and  only  two  other  resolves  were  signed  by  the  governor  during 
the  month  of  February.2 

Fourth,  he  requested  absolute  acceptance  of  his  budget  both  as 
to  revenue  and  expenditure, — and  the  enactment  of  additional 
revenue  measures  to  cover  any  extra  appropriations  which  might 
be  made.  As  to  expenditure,  out  of  320  items  for  1917  in  the 
budget,  the  legislature  changed  only  15  and  out  of  313  for  1918 
changes  were  made  in  14  only.  With  the  exception  of  certain 
changes  in  the  system  of  appropriating  money  for  state-aid  and 
town  roads,  there  was  only  one  item  in  the  budget  for  each  year 
which  was  changed  more  than  $1,000.  The  general  appropria- 
tion act  for  1917  exceeded  the  budget  recommendations  by  only 
$7,292.08;  and  the  1918  act  by  only  $8,007.67.     This  ready  com- 


1  Letter  to  Mr.  Charles  F.  Kerrigan,  dated  August  10,  1917. 

2  Acts  and  Resolves  of  the  78th  Legislature,  Portland,  1917. 

90 


CONCLUSIONS 


pliance  with  the  wishes  of  the  executive  may  well  be  explained  by 
reference  to  the  splendid  esprit  de  corps  which  existed  between 
the  governor  and  the  legislative  leaders.  Senator  Marshall  de- 
precated the  fact  that  a  tendency  to  subservience  on  the  part 
of  the  legislature  had  resulted  in  less  debate  on  financial  mat- 
ters on  the  floor  of  the  houses.  Debates,  of  course,  are  not 
always  held  for  the  edification  of  the  public  nor,  for  the  sake  of 
bringing  out  clearly  the  real  issues  at  stake  in  the  passage  of  a  bill 
or  resolve.  If  there  were  no  opposition  to  the  rule  of  the  majority 
party  or  faction  in  a  legislative  body  it  is  safe  to  say  there  would 
be  few  debates.  These  great  bodies  of  law-makers  usually  become 
"deliberative"  only  when  the  element  out  of  power  desires  to 
gain  prestige  at  the  expense  of  its  adversaries.  Representative 
Murray,  minority  leader  in  the  house,  said  that  the  Democrats 
found  no  fault  with  Governor  Milliken's  budget  procedure  and 
largely  for  this  reason  there  were  few  debates  in  the  houses 
on  financial  measures.  Appropriation  matters  were  so  clearly 
presented  that  there  was  apparently  less  occasion  for  suspicion 
on  the  part  of  the  minority  than  would  have  been  the  case  under 
the  old  system.  Under  such  circumstances  it  would  seem  that  an 
absence  of  debate  might  be  considered  a  healthy  sign. 

Fifth,  he  advised  the  enactment  of  several  new  tax  laws  so  that 
the  rate  for  the  general  state  tax  might  not  have  to  be  increased 
beyond  five  mills.  Here,  as  has  already  been  demonstrated,  the 
legislature  balked  and  here,  thought  Governor  Milliken's  oppo- 
nents, his  budget  met  its  Waterloo.  True  it  is  that  the  legislature 
adopted  his  new  tax  recommendations  to  the  total  amount  of  a 
little  over  $50,000  instead  of  to  about  $900,000  and  that  the  state 
tax  rate  was  increased  from  five  to  six  mills,  but  it  is  also  true 
that  the  governor  was  concerned  far  more  about  the  control  and 
reasonable  limitation  of  appropriation  measures  than  he  was 
about  the  manner  in  which  the  money  to  pay  those  resolves  was 
to  be  raised.  He  clearly  presented  the  situation  to  the  people  of 
the  state  of  Maine  in  his  taxation  message  to  the  legislature  on 
April  2.  The  legislature  chose  to  put  the  additional  tax  on  the 
entire  state  rather  than  on  certain  corporations,  as  the  governor 
had  advocated.  As  they  thus  clearly  took  this  burden  upon 
themselves,  the  governor  was  satisfied.  Governor  Milliken 
recognized  that  he  might  have  presented  the  revenue  features  of 
his  budget  on  a  basis  of  the  existing  laws,  making  further  taxa- 
tion recommendations  supplementary  to  the  budget.  This 
might  have  been  advisable  in  view  of  the  fact  that  many  legislators 

91 


THE     GOVERNOR'S     BUDGET     IN     MAINE,     1917 


insisted  upon  considering  the  taxation  recommendations  as  the 
essential  features  of  the  governor's  budget.  Senator  Swift  was 
very  strongly  of  the  opinion  that  the  budget  should  be  made  on  a 
basis  of  the  existing  taxation  laws  but  the  governor  desired  to 
present  his  financial  program  as  a  unit. 

Sixth,  he  desired  all  non-budget  appropriation  items  to  be  in- 
cluded in  one  appropriation  act  and  all  budget  items  in  another, 
for  each  of  the  years  1917  and  1918.  This  was  carried  out  by  the 
legislature  practically  to  the  letter.  In  both  the  budget  bills  for 
1917  and  1918  there  were  only  five  items  which  were  not  in  the 
budget:  one,  in  the  1917  bill,  " roads  and  bridges,  as  per  resolves 
of  the  legislature,''  represented  merely  a  change  in  the  system  of 
administration  of  road  funds;  two,  both  in  the  1917  and  1918 
bills,  interest  on  certain  trust  funds,  apparently  represented  care- 
less omissions  from  the  budget. 

Governor  Milliken  had  succeeded  in  carrying  through  his 
program.  Three  questions  now  arise:  1.  How  did  he  do  it?  2. 
What  did  it  really  accomplish?  3.  What  further  steps  might  be 
taken  in  this  direction? 

His  ways  and  means  were  personal.  He  advocated  no  statute 
by  which  budget  procedure  and  practice  might  be  fixed.  This  had 
been  attempted  in  the  budget  statute  of  1915  but  its  provisions 
were  quietly  ignored  by  Governor  Milliken  who  never  once  alluded 
to  its  existence.  The  governor  preferred  to  experiment  in  prac- 
tical budget-making  before  attempting  to  set  up  rules  and  regu- 
lations by  which  to  bind  posterity.  He  conceived  the  program 
to  be  one  which  could  best  be  carried  out  by  the  closest  co-opera- 
tion between  the  leaders  of  the  executive  and  legislative  branches 
of  the  government.  And  so  the  budget  was  formed  and  enacted 
as  the  result  of  constant  intercourse  and  consultation  between 
the  executive  chamber  and  the  legislative  lobbies.  Once  in  a 
while  if  the  legislative  leaders  proved  over-insistent  with  refer- 
ence to  bills  outside  the  budget,  the  governor  would  deem  it  wise 
to  yield  to  their  wishes,  at  least  partially;  but  as  a  rule  bills  and 
resolves  were  sent  to  their  final  resting  places  if  the  governor 
indicated  his  disapproval.     The  last  rites  were  usually  performed 


1  The  governor  did,  however,  comply  with  the  letter  of  the  law  for  it  read 
(see  page  22)  that  the  budget  should  be  submitted  not  less  than  15  days  after 
the  legislature  convenes.  Of  course  it  was  intended  to  have  it  read  "not 
more  than  15  days,"  as  the  governor's  private  secretary  states  in  a  letter 
dated  May  31,  1918. 

92 


CONCLUSIONS 


by  the  legislators  at  the  suggestion  of  the  governor,  but  the  his- 
tory recorded  in  these  pages  shows  that  he  was  willing  to  perform 
the  ceremony  himself  in  case  of  dire  necessity.  Under  these 
circumstances  it  is  difficult  to  believe  with  the  secretary  of  the 
senate  that  the  governor  was  and  always  will  be  the  mere  tool  of 
the  legislature. 

Four  distinct  points  may  be  noted  under  the  head  of  actual 
accomplishments.  First,  responsibility  for  the  budget  was 
assumed  by  a  leader  who  could  be  held  responsible.  Although 
the  budget  was  formed  after  hearings  held  by  both  the  executive 
and  the  legislative  leaders,  the  governor's  document  was  essen- 
tially one  which  he  had  prepared  himself.  He  did  not  ask  for 
divided  responsibility.  If  the  legislature  chose  to  enact  his 
program,  he  was  willing  to  take  all  the  consequences.  They 
accepted  his  leadership  with  reference  to  the  appropriations  but 
not  with  reference  to  revenue.  If  the  people  object  to  a  six  mill 
tax,  they  can  wreak  vengeance  on  the  legislature;  if  they  are 
opposed  to  the  $2,000  item  for  Lee  Academy  they  can  vote 
against  the  governor  at  the  next  election.  Responsibility  is 
clearly  defined. 

Second,  the  financial  program  of  the  state  was  made  much 
clearer  than  ever  before.  During  all  the  discussion  of  bills  and 
resolves  carrying  money,  the  budget  was  on  the  desks  of  the 
legislators  in  printed  form.  This  was  the  standard  against  which 
they  could  measure  the  specific  proposal  before  them.  Even  the 
specific  bills  and  resolves  themselves  were  in  many  cases  item- 
ized as  never  before.  As  an  example,  there  are  reprinted  here- 
with, the  1915  resolve  for  the  Augusta  state  hospital  and  the 
1917  resolve  for  state  hospitals: 

1915— Chapter  167 

Resolve  in  favor  of  the  Augusta  State  Hospital  for  the  full 
maintenance  and  support  of  all  state  charges  for  the  years 
1915  and  1916. 

Resolved,  That  there  be,  and  hereby  is,  appropriated  the 
sum  of  $227,000  for  the  year  1915,  for  the  use  of  the  Augusta 
State  Hospital  for  the  year  1915,  and  that  any  of  this  appro- 
priation remaining  unexpended  at  the  end  of  said  year,  may 
be  available  for  the  year  1916;  and  be  it  further  resolved, 

That  there  be,  and  hereby  is,  appropriated  the  further  sum 
of  $234,000  for  the  year  1916,  for  the  use  of  said  hospital,  for 
the  full  maintenance  and  support  of  all  state  charges  for  the 
year  1916;  said  sums  to  be  expended  under  the  direction  of 
the  hospital  trustees.1 

1  Acts  and  Resolves  of  the  77th  Legislature,  Portland  1915,  p.  820. 

93 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


1917— Chapter  50 

Resolve  in  favor  of  the  state  hospitals  for  maintenance  and 
other  purposes  for  the  years  1917  and  1918. 

Resolved,  that  there  be,  and  hereby  is,  appropriated: 
For  the  Augusta  State  Hospital 

1917  1918 

For  personal  services;  for  salaries 
and  wages  of  all  officers  and  em- 
ployes, except  those  wholly  en- 
gaged in  repairs  of  buildings  and 
equipment,  for  the  year  nineteen 
hundred  seventeen,  the  sum  of 
ninety-five  thousand  dollars,  and 
for  the  year  nineteen  hundred 
eighteen,  the  sum  of  ninety-seven 
thousand  dollars $95,000  $97,000 

For  food  supplies;  namely  all  arti- 
cles of  food  for  the  year  nineteen 
hundred  seventeen,  the  sum  of 
one  hundred  and  eleven  thou- 
sand dollars;  and  for  the  year 
nineteen  hundred  eighteen,  the 
sum  of  one  hundred  and  seven- 
teen thousand  dollars 111,000  117,000 

For  clothing;  namely,  all  articles  of 
personal  apparel  and  materials  for 
making  the  same  for  the  year  nine- 
teen hundred  and  seventeen,  the 
sum  of  thirteen  thousand  dollars; 
and  for  the  year  nineteen  eighteen, 
the  sum  of  thirteen  thousand  dol- 
lars. . 13,000  13,000 

For  repairs  and  equipment;  namely, 
all  materials  and  supplies  required 
for  upkeep  of  grounds,  buildings 
and  attached  fixtures;  all  addi- 
tions to  and  repairs  and  replace- 
ments of  furniture  and  equipment, 
including  farm  equipment  and 
livestock,  and  all  personal  services 
rendered  wholly  in  connection 
with  repair  work  for  the  year  nine- 
teen hundred  and  seventeen,  the 
sum  of  thirty-five  thousand,  one 
hundred  and  twenty-three  dol- 
lars; and  for  the  year 'nineteen 
hundred  and  eighteen,  the  sum  of 
thirtv-six  thousand,  two  hun- 
dred'and  sixty  dollars 35,123.00     36,260.00 

94 


«    t 


CONCLUSIONS 


-•  -  *-; —  • t — . w— 

•      .     *  *     *     '      •  « 


For  general  expenses;  namely,  all 
other  materials,  supplies,  and  ex- 
penses incident  to  maintenance 
of  the  institution  and  the  pa- 
tients thereof,  whether  present  or 
absent,  for  the  year  nineteen  hun- 
dred and  seventeen,  the  sum  of 
sixty-one  thousand,  one  hundred 
and  ten  dollars;  and  for  the  year 
nineteen  hundred  and  eighteen, 
the  sum  of  sixty  thousand,  four 
hundred  and  forty-two  dollars .  .     61,110 .  00      60,442 .  00l 

Third,  there  was  effected  a  considerable  reduction  in  the 
amount  of  " log-rolling"  usually  performed  by  a  Maine  legislature, 
and  special  legislation  was  put  in  its  proper  place, — after  neces- 
sary general  legislation.  This  gain  was  generally  recognized. 
It  was  mentioned  to  the  writer  very  definitely  by  Senator  Swift 
and  Senator  Marshall. 

Fourth,  the  members  of  the  legislature  and  the  people  of  the 
state  as  a  whole  were  educated  in  the  management  of  state  govern- 
ment, and  more  specifically  in  state  finance,  as  never  before.  The 
new  budget  procedure  attracted  attention  in  the  press  which 
carried  the  news  throughout  the  state;  the  new  form  of  hearings 
gave  every  legislator  an  opportunity  to  learn  about  all  the  appro- 
priations, and  to  carry  back  to  his  constituency  a  well-rounded 
view  of  state  administration. 

The  third  question,  as  to  what  further  steps  might  be  taken  in 
the  direction  of  improved  budget  procedure,  opens  rather  a  large 
field.  Proposals  which  have  actually  been  made  with  reference 
to  the  situation  in  Maine  will  be  considered  and  the  present 
practice  there  will  be  compared  with  the  "  measuring  stick  of 
democracy."2 

No  strong  movement  seemed  to  make  itself  felt  in  the  legis- 
lature to  write  on  the  statute  books  anything  further  with 
reference  to  budget  procedure.  Governor  Milliken  thought 
that  eventually  statutes  dealing  with  the  matter  might  be 
desirable  but  that  the  most  satisfactory  methods  should  first  be 
determined  by  practice.  Senator  Higgins  was  more  inclined  to 
enact  some  laws  during  the  1917  session  governing  the  financial 
administration  of  the  state,  but  he  did  not  press  the  matter  as  the 
initiative  seemed  to  lie  very  properly  with  the  governor.     The 


1  Acts  and  Resolves  of  the  78th  Legislature,  Portland,  1917,  p.  748. 

1  Municipal  Research  No.  70,  New  York,  February  1916,  pp.  XII-XV. 

95 


THE     GOVERNOR'S     BUDGET    IN     MAINE,     1917 


• 


governor's  actual  accomplishments  in  1917  were  considerable 
and  it  would  indeed  seem  unfortunate  if  it  should  not  be  per- 
mitted him  to  enact  into  law  the  results  of  his  experience.  The 
power  of  example  and  precedent  is  before  the  1919  legislature, 
however,  and  to  judge  by  the  fate  of  the  1915  budget  law,  example 
and  precedent  may  prove  of  more  value  than  statute. 

As  has  been  noticed,  the  record  of  resolves  carrying  money  is 
not  kept  for  ready  reference  during  the  session  of  the  legislature 
nor  for  purposes  of  consultation  afterwards.  Even  the  budget 
director  did  not  have  a  daily  record  of  the  status  of  such  resolves 
and  a  new  card  system  planned  by  the  auditor  will  therefore  be 
of  value  to  all  those  dealing  with  appropriation  matters.  The 
type  of  card  printed  for  this  purpose  appears  below. 

(reduced) 
Department: 


Title 


Authority , 


Finally  passed 


Engrossed  resolve 
Committee  change  .  .  . 

Printed  bill .••.••■ 

Statute  appropriation 

Estimate 


1917 


1918 


Sections  5,  6,  7,  and  8  of  the  " Measuring  Stick  of  Democracy" 
will  be  considered  here.  The  questions  under  each  section  will 
be  quoted  and  discussion  will  follow. 

Section   5.    Legislative    consideration    of  budget   or   plan   of 
financing: 

Is  the  procedure  such  as  to  require  that  an  executive  officer 
(one  who  is  responsible  to  the  people  or  to  their  representa- 
tives for  the  whole  administration)  shall  submit  a  definite 
plan  for  financing  next  year's  expenditures? 

The  procedure  adopted  by  governor  Milliken  involved  the 
submission  of  such  a  plan,  as  has  been  shown. 

Is  the  officer  submitting  such  a  plan  required  or  even  per- 
mitted to  come  before  the  representative  body  and  explain 
his  proposals  for  revenue  and  borrowing? 

96 


VITA 


VITA 

The  writer  was  born  on  November  16,  1891,  at  Boston,  Massa- 
chusetts. He  attended  the  Boston  public  schools,  the  Stone 
School,  Cornwall-on-Hudson,  New  York,  and  graduated  from 
the  Auburn  Academic  High  School,  Auburn,  New  York,  in  1909. 
He  graduated  from  Williams  College  in  1913  with  the  B.A.  degree, 
and  during  a  part  of  the  next  two  years  investigated  the  govern- 
ment of  cities  in  China  under  the  direction  of  President  Harry  A. 
Garfield  of  Williams  College.  At  Harvard  during  1915-6  he 
pursued  graduate  studies  in  History  and  International  Law, 
working  under  Professors  A.  C.  Coolidge,  R.  H.  Lord,  and  G.  G. 
Wilson.  He  received  the  degree  of  Master  of  Arts  from  Harvard 
in  1916.  During  the  next  year  he  continued  his  work  in  the  field 
of  political  science,  attending  courses  at  Columbia  University 
under  Professors  C.  A.  Beard,  H.  L.  McBain,  J.  B.  Moore,  T.  R. 
Powell,  E.  M.  Sait,  and  E.  R.  A.  Seligman,  and  doing  special 
budget  work  in  connection  with  the  Training  School  for  Public 
Service,  Bureau  of  Municipal  Research,  New  York  City. 

He  has  held  the  following  positions:  Instructor  in  English, 
Mathematics  and  History,  Anglo-Chinese  College,  Foochow, 
China,  1913-4;  Instructor  in  English,  Peking  University,  Peking, 
China,  1914-5;  Secretary,  National  War  Work  Council,  Y.  M. 
C.  A.,  1917;  Secretary  to  the  Park  Commissioner,  Boroughs  of 
Manhattan  and  Richmond,  New  York  City,  1917;  compiling 
financial  estimates,  Office  of  the  Quartermaster  General,  War 
Department,  1918;  First  Lieutenant,  National  Army,  commis- 
sioned in  Statistics  Branch,  General  Staff,  War  Department, 
1918. 


107 


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